Malaysia seizes $12.1M in AI chips at Kuala Lumpur airport, probing smuggling syndicate

Malaysian customs said Wednesday it seized about RM49.5 million ($12.11 million) in advanced AI chips after finding 30 server units falsely declared as electronic components in KLIA's free trade zone on Oct 15. The shipment came from one Asian country and was to be re-exported to another without the required permit. Officials tied it to a syndicate behind at least five cases this year totaling more than RM100 million in seizures; no arrests have been made. Malaysia imposed permit rules on US-origin AI chips last year under US pressure to stem their flow to China.