Malaysia Seizes AI Chips Worth 12.11 Million Dollars

Malaysian customs said it seized advanced artificial intelligence chips worth about 49.5 million ringgit, about 12.11 million dollars, in a smuggling attempt this month.

Reuters reported that customs found 30 servers containing advanced artificial intelligence chips during an inspection on October 15 at the Kuala Lumpur International Airport free trade zone.

The shipment was to be re-exported from one Asian country to another Asian country, and a trade permit was required for that movement.

Airport customs chief Aspalila Ag Tuah told reporters the servers were falsely declared as electronic components, and were arranged so that passing through Malaysia would avoid restrictions when exported to the next destination.

The Malaysian company that assisted the shipment was summoned to cooperate with the investigation.

Customs suspects the shipment is linked to the organization behind a similar smuggling attempt caught in June.

Malaysia introduced export controls last year on the movement of American-made advanced artificial intelligence chips.

Reuters reported that the controls followed pressure from the United States to block those chips from reaching China.

The reports did not name the countries of origin or destination of the chips seized in this case.