Malaysia seizes $12.1 million in AI chips at Kuala Lumpur airport

Customs officers say 30 servers were falsely declared as ordinary electronics and tied to a suspected smuggling syndicate Malaysian customs officers have intercepted 30 server units packed with advanced AI chips at Kuala Lumpur International Airport. The haul is valued at approximately RM49.5 million, or around $12.1 million. The seizure is the latest sign that Malaysia is taking its role in the global AI chip supply chain seriously. What customs found The shipment was stopped on October 15, 2026, in the airport’s free trade zone. Authorities announced the seizure on October 28. According to Aspalila Ag Tuah, the airport’s customs director, the servers were bound for re-export to another Asian country. That kind of onward shipment requires a permit under Malaysia’s Strategic Trade Act 2010. Aspalila described the alleged scheme in blunt terms. The goods were routed through Malaysia so that they could move on to their final stop without facing restrictions. “…shipped through Malaysia to ensure there would be no restrictions imposed while being exported to the next destination,” Aspalila said. A Malaysian company that helped facilitate the shipment has been called in to assist with t...