Malaysian customs authorities have seized advanced artificial intelligence chips worth 49.5 million ringgit ($12.11 million) at Kuala Lumpur’s main airport, as investigators probe a suspected network smuggling high-performance semiconductors through the country.
The seizure involved 30 server units containing advanced AI chips discovered during an inspection at Kuala Lumpur International Airport’s free trade zone, airport customs director Aspalila Ag Tuah told reporters on Wednesday.
Initial investigations showed the shipment originated from an Asian country and was intended for re-export to another country in the region, a transaction requiring a trade permit, she said.
“The servers were falsely declared as electronic components… and shipped through Malaysia to ensure there would be no restrictions imposed while being exported to the next destination,” Aspalila said.
A Malaysian company that facilitated the shipment had been summoned to assist with the investigation, she said.
The shipment was suspected to be linked to a network involved in a similar smuggling attempt thwarted by customs authorities in June, Aspalila said.
At least five cases had been linked to the syndicate, involving seizures of chips worth more than 100 million ringgit in total, she said, declining to provide further details because the investigation was ongoing.
Malaysia imposed export controls last year on advanced AI chips originating from the United States, following pressure from Washington to curb the flow of high-performance semiconductors into China.
The controls reflect growing international scrutiny of semiconductor supply chains as the United States seeks to restrict China’s access to advanced computing technology used in artificial intelligence development.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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