Malaysia Foils Smuggling of AI Chips Worth Millions

Malaysia's customs department intercepted smuggling attempts of AI chips valued at $12.93 million at Kuala Lumpur Airport. The operation involved falsely labeled servers intended for re-export. Authorities are also investigating meth-laced vape liquid and tracking illicit semiconductor trade ties.

Malaysia's customs department has successfully intercepted a major smuggling operation involving advanced AI chips valued at 52.9 million ringgit ($12.93 million), uncovering the scandal at Kuala Lumpur International Airport earlier this month.

Despite export controls imposed last year, aimed at limiting the movement of high-performance US-origin chips, 72 servers containing these chips were clandestinely flown into the airport's free trade zone. Authorities are investigating false declarations of the items, initially labeled as 'computer components', to avoid detection. The servers were purportedly set to be re-exported to another Asian nation, a move necessitating a permit under Malaysia's Strategic Trade Act.

Concurrently, authorities seized six boxes with 4,760 vape liquid cartridges laced with methamphetamine, valued at 1.19 million ringgit ($290,953.55), hidden within CPU casings. The shipment was bound for an unspecified neighboring country. Malaysian investigations, supported by global reports, continue to track illicit semiconductor trade activities.