Malaysia seizes smuggled AI chips worth US$12 million at Kuala Lumpur airport

Malaysian customs announced on Wednesday the seizure of about 49.5 million ringgit (US$12 million) worth of advanced AI chips this month at Kuala Lumpur's main airport, targeting a syndicate suspected of smuggling high-performance semiconductors. Malaysia imposed export controls last year on US-origin advanced AI chips after US pressure to stem their flow into China; on October 15, authorities found 30 servers among the shipments. The case marks an enforcement step against diversion of restricted AI hardware through a Southeast Asian transit hub.

Malaysian customs said on Wednesday that it had seized about 49.5 million ringgit US$12 million worth of advanced artificial intelligence chips this month, as authorities close in on a syndicate suspected of smuggling high-performance semiconductors through the country’s main airport. Malaysia imposed export controls last year on the movement of advanced AI chips of US origin, following pressure from the United States to stem their flow into China. On October 15, authorities found 30 server...