Malaysia foils major AI chip smuggling attempt

Malaysia has foiled an attempt to smuggle advanced artificial intelligence (AI) chips worth more than 12 million USD through its main international airport.

Hanoi (VNA) – Malaysia has foiled an attempt to smuggle advanced artificial intelligence (AI) chips worth more than 12 million USD through its main international airport.

Customs officials said this was the fifth seizure this year linked to a suspected AI chip smuggling network, with the total value exceeding 24 million USD.

Speaking at a press conference, Aspalila Ag Tuah, director of customs at Kuala Lumpur International Airport (KLIA), said authorities seized 30 servers containing advanced AI chips worth 49.5 million MYR (12.1 million USD) during an inspection of the airport’s free trade zone this month.

The servers had been declared as “electronic components” to avoid detection, she said. Initial investigations found that the shipment had arrived from an Asian country and was intended for re-export to another country in the region.

According to Aspalila, the suspected network used Malaysia as a transit point to circumvent restrictions on the export of the servers to their next destination. The company handling the shipment has been summoned to assist with the ongoing investigation.

The Malaysian authorities are seeking to prevent the country, an emerging data centre hub, from being used as a transit point for restricted AI chips destined for other markets.

In 2025, Malaysia tightened controls on the export and transshipment of US-origin chips, requiring strategic trade permits and advance notification where there are concerns about potential misuse or diversion.

The country has also launched several investigations into suspected cases of improper chip transfers, including how US-made Nvidia chip servers destined for Singapore ended up in Malaysia./.

VNA

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