Malaysia intercepts 30 AI chip servers bound for undisclosed Asian country
Malaysia foiled an attempt to smuggle advanced artificial intelligence chips through the country's main airport, customs officials said Wednesday, in a case worth more than US$12 million.
Malaysia apprehended 30 servers containing advanced AI chips at Kuala Lumpur International Airport's free trade zone, valued at approximately $12.1 million. This fifth such case this year saw the total estimated value of smuggled AI chips exceed $24 million. The Southeast Asian nation, aiming to deter its usage as a transit point for restricted chips, seized the units.
Earlier this year, Malaysia tightened export and transshipment controls on chips from the United States, mandating a strategic trade permit and advance notification if misuse or diversion is suspected. The servers were initially declared as electronic components to evade detection. Investigations revealed the servers were destined for re-export to another Asian nation, suggesting the syndicate exploited Malaysia as a transit point to bypass potential restrictions.
The origin of the chips, the destination country, and the shipment facilitator remain undisclosed. The case is ongoing, with the company involved called upon to aid investigations. The U.S. has been imposing stricter restrictions on advanced semiconductor exports through Malaysia and Thailand to prevent their diversion to China.
Malaysia has also conducted several probes, including one into how servers with U.S.-made Nvidia chips intended for Singapore ended up in Malaysia. Authorities at the time found no evidence of illicit trade in advanced semiconductors.
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