Malaysian customs seize $12.1m of AI chips at Kuala Lumpur airport

Malaysian customs officials announced on 28 October that they have confiscated AI chips worth $12.1 million during an inspection at Kuala Lumpur International Airport.

The seized items comprised 30 server units containing advanced AI chips that had been falsely declared as generic electronic components. The customs director, Aspalila Ag Tuah, said the false declaration was intended to evade the trade‑permit requirement for US‑origin AI chip shipments.

Authorities indicated the servers originated from another Asian country and were destined for a third country on the continent, a route that would normally require a permit under Malaysia’s regulations introduced last year at the request of the United States.

The operation follows a similar foiled attempt in June, when customs stopped a shipment valued at nearly $13 million. The current case is linked to a syndicate previously implicated in at least five seizures totalling almost $25 million.

A Malaysian company that facilitated the shipment has been summoned to assist with the investigation.

Source: Silicon Republic. Photo: Martijn Stoof / Pexels.