Malaysian customs said it seized advanced AI chips worth about RM49.5 million in October, part of a widening investigation into a network suspected of routing high-performance semiconductors through Kuala Lumpur’s main airport. The Straits Times reported the figure as S$15.5 million.
The largest find came on October 15, when officers inspecting the free trade zone at Kuala Lumpur International Airport opened 30 server units containing the chips. Director Aspalila Ag Tuah told reporters the shipment came from one Asian country and was bound for re-export to another, a move that required a trade permit.
Paperwork listed the servers as ordinary electronic components, and that label let the cargo move through Malaysia unbothered by the licensing rules that would have applied to advanced computing hardware traveling straight from origin to destination.
Officers have summoned a local firm that handled the logistics and are treating it as a witness while the inquiry continues. They link the consignment to the same network behind a smuggling attempt foiled in June.
At least five cases have been tied to the syndicate, with total seizures above RM100 million. Customs declined to give further detail, citing the continuing probe.
Malaysia imposed controls in 2025 on moving US-origin advanced AI chips through its territory after pressure from Washington, which has been trying to slow the flow of restricted processors toward China. Brokers have shifted routes accordingly, and transit hubs are the soft point in the chain.
