Malaysia seizes $12.1 million in AI chips at Kuala Lumpur airport, its fifth case tied to one smuggling syndicate

Malaysian customs said Wednesday it seized 30 server units packed with advanced AI chips, worth about RM49.5 million ($12.1 million), during an Oct. 15 warehouse inspection in Kuala Lumpur International Airport's free trade zone. The servers came in from one Asian country under a single air waybill declaring them as electronic components and were bound for re-export to another without the required permit. Officials said it is the fifth case this year linked to the same syndicate, with seizures across the five topping RM100 million; no arrests have been made. Malaysia began requiring permits for transit of high-end US-origin AI chips last year under US pressure to stem their flow to China, and the trade ministry declined to name the chip brands or destinations while the probe continues.