Malaysia seizes AI chips worth $12.1 million — Channel NewsAsia

Malaysian customs seized 30 server units containing advanced artificial intelligence chips worth about 49.5 million ringgit, or $12.11 million. The equipment was discovered on October 15 during an inspection in the free trade zone of Kuala Lumpur International Airport in Sepang, Channel NewsAsia reports.

Servers declared as electronic components

Airport customs director Aspalila Ag Tuah said the cargo arrived from one Asian country and was to be re-exported to another country in the region. A trade permit is required for such a transfer.

According to her, the servers were falsely declared as electronic components. She added that the shipment was routed through Malaysia to evade restrictions on exports to the next destination.

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Possible link to a syndicate is being investigated

The Malaysian company that facilitated the transportation of the cargo has been summoned to assist in the investigation. Customs suspects that a network linked to a similar smuggling attempt stopped in June may have been involved in the shipment.

According to Aspalila Ag Tuah, the syndicate has been linked to at least five cases in which chips worth more than 100 million ringgit in total were seized. She did not disclose details, citing the ongoing investigation.

Last year, Malaysia introduced export controls on the movement of advanced U.S.-origin AI chips following pressure from the United States aimed at limiting their flow to China.