(Kuala Lumpur) Malaysia's Customs Department has seized advanced artificial intelligence (AI) chips worth about RM49.5 million (S$15.55 million) at Kuala Lumpur International Airport. Authorities are investigating a criminal syndicate that has repeatedly smuggled advanced AI chips through the airport.
Reuters reported that airport customs chief Aspalila Ag Tuah told reporters on Wednesday (28 October) that customs officers found 30 servers containing advanced AI chips during an inspection at the Kuala Lumpur International Airport Free Trade Zone on 15 October.
"The servers were declared as 'electronic components' to avoid detection by the authorities," she said. "They were transshipped through Malaysia to evade potential checks on exports to their next destination."
Preliminary investigations showed that the shipment originated in one Asian country and was intended to be sent on to another. However, Aspalila Ag Tuah declined to name the countries where the goods were manufactured, originated or were destined.
She stressed that such transshipment required the relevant trade permits. Authorities have summoned the head of a Malaysian company suspected of arranging the shipment to assist with investigations.
She said the shipment was allegedly controlled by the same criminal network that had organised a similar smuggling operation in June, which customs officers also uncovered.
She revealed that the syndicate was linked to at least five cases, with the seized chips worth more than RM100 million in total. She declined to disclose further details as investigations were ongoing.
The US has in recent years continued to pressure countries to prevent advanced AI chips from reaching China. Last year, the Malaysian government also imposed export controls on advanced AI chips made in the US to prevent the technology from reaching restricted markets through third countries.