Science & Tech · Cybersecurity · 3 hrs ago
Malaysia seizes AI chips worth RM49.5 million at Kuala Lumpur airport
Malaysian customs seized advanced AI chips from 30 server units at Kuala Lumpur International Airport on October 15.
The chips were valued at about RM49.5 million, or US$12 million according to one report.
Customs says the shipment came from an Asian country and was meant to be sent on to another country in the region.
The servers were falsely declared as electronic components, and the re-export required a trade permit, customs said.
Malaysia introduced export controls in 2025 on advanced US-origin AI chips after pressure from the United States to prevent them reaching China.
At least five cases are linked to the suspected network, with chip seizures worth more than RM100 million in total.
A Malaysian firm involved in arranging the shipment has been asked to help investigators, and the probe is ongoing.
Malaysian customs said it seized advanced AI chips worth RM49.5 million in October.
The seizure involved 30 server units found at Kuala Lumpur International Airport’s free-trade zone on October 15.
Authorities suspect the shipment was part of a smuggling network moving high-performance semiconductors through Malaysia.
Investigators said the servers were falsely declared and were to be re-exported to another Asian country.
Customs said at least five cases were linked to the network, involving chip seizures worth more than RM100 million in total.
- Who
- Malaysian customs seized the chips. Authorities suspect a smuggling network was involved.
- What
- Customs seized 30 server units containing advanced AI chips worth RM49.5 million.
- When
- The units were found on October 15; customs announced the seizure on October 28.
- Where
- Kuala Lumpur International Airport’s free-trade zone, Malaysia.
- Why
- Authorities suspect the shipment was being moved through Malaysia for re-export without the required trade permit.
This story does not have two clearly opposing sides.
Malaysia imposed export controls on the movement of advanced AI chips of US origin.
Customs foiled a similar suspected smuggling attempt, according to the airport’s customs director.
Authorities found 30 server units containing advanced AI chips during an inspection at Kuala Lumpur International Airport’s free-trade zone.
Malaysian customs announced the seizure of chips worth about RM49.5 million.
- Seizure value
- RM49.5 million
- Units found
- 30 server units
- Location
- Kuala Lumpur International Airport’s free-trade zone
- Announcement date
- October 28, 2026
- Cases linked to network
- At least five
- Total value across linked seizures
- More than RM100 million
2 sources
What people are saying
The servers were falsely declared as electronic components... and shipped through Malaysia to ensure there would be no restrictions imposed while being exported to the next destination.