Malaysia Foils AI Chip Smuggling Attempt Worth RM52.9 Million
Malaysia’s customs authorities have intercepted an alleged attempt to smuggle advanced artificial intelligence chips worth 52.9 million ringgit ($12.93 million) through the country’s main international airport. The seizure highlights continued efforts to enforce export controls on high-performance technology amid growing scrutiny over global AI chip movements.
Customs Inspection Uncovers AI Servers
Malaysia’s customs department said officers discovered 72 server units containing advanced AI chips during an inspection at Kuala Lumpur International Airport’s free trade zone on June 5.
According to customs officials, the shipment had arrived by air before it was due to be re-exported to another Asian country. However, investigators found that such a transfer required an export permit under Malaysia’s Strategic Trade Act.
Officials also revealed that the shipment had been falsely declared as “computer components” in an apparent attempt to avoid detection. Furthermore, Malaysia had been listed only as a transit point before the goods reached their intended destination.
Customs director Zulkifli Muhammad declined to identify the destination country because investigations remain ongoing.
Authorities Continue Investigation
Customs officers have confiscated all 72 servers while investigations continue. In addition, authorities have called in a Malaysian company that facilitated the shipment to assist with enquiries.
Malaysia introduced export controls last year covering the movement of high-performance chips of U.S. origin. The measures followed pressure from the United States to limit the transfer of advanced semiconductors to China, where they could support artificial intelligence development.
Last year, Malaysian authorities also examined reports that a Chinese company operating in the country was using servers equipped with advanced AI chips for development work. However, investigators found no evidence of illegal trade involving advanced semiconductors.
Separately, U.S. authorities charged two Chinese nationals last August with allegedly shipping AI chips worth tens of millions of dollars from their California-based company to China through shipping and freight forwarding firms in Malaysia and Singapore.
Separate Drug-Laced Vape Liquid Seizure
In a separate operation, Malaysian customs officers seized six boxes containing 4,760 cartridges of vape liquid valued at 1.19 million ringgit ($290,953.55).
Authorities said the cartridges had been concealed inside the casings of central processing units before officials intercepted the shipment on June 10.
Subsequent checks found that the vape liquid contained methamphetamine. Officials believe the shipment was intended for export to a neighbouring country, although customs declined to provide further details because investigations remain in progress.
With inputs from Reuters
