Customs officers inspecting cargo at Kuala Lumpur International Airport's free-trade zone found 30 server units carrying advanced artificial intelligence chips on 15 October, a shipment valued at about 49.5 million ringgit (US$12 million). Aspalila Ag Tuah, the airport's customs director, oversees customs operations at the site.
The servers were described in customs paperwork as electronic components or electric goods. Authorities said the shipment had come from an Asian country and was due to be re-exported to another Asian nation without the required trade permit.
The seizure was announced on Wednesday, 28 October 2026. A Malaysian firm that helped facilitate the shipment has been called in to assist the investigation.
Officials suspect a syndicate is using Malaysia as a transit hub to move the chips onwards in breach of restrictions on their movement. The identity of the countries at either end of the shipment has not been specified.
Malaysia imposed controls last year on advanced AI chips of US origin. The rules require permits for export, transit and transshipment.
The measures followed pressure from the United States, which has sought to slow the flow of such chips into China and limit Beijing's artificial intelligence and military capabilities. Washington has also sought to restrict China's access to advanced semiconductors, including chips of Nvidia origin.
Customs suspects the 15 October case involved the same network behind an earlier attempt at the airport. On 5 June, officers found 72 server units containing advanced AI chips valued at approximately 13 million dollars. Those servers had also been falsely declared and lacked the required permits.
At least five cases have been linked to the syndicate. Across them, chip seizures have exceeded 100 million ringgit, while some sources put the value across the cases at over 25 million dollars.
Singapore and Taiwan have introduced similar export controls on advanced AI chips of US origin.
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