Malaysian customs officials foiled an attempt to smuggle advanced artificial intelligence chips through Kuala Lumpur International Airport, seizing a shipment worth nearly US$13 million.
A raid on the airport's free trade zone on June 5 uncovered 72 servers. The goods were declared as "computer components" to avoid detection, according to airport customs director Zulkifli Muhammad.
The operation underscores Malaysia's role as a growing data-center hub and its efforts to prevent its territory from being used as a transit point for restricted technology. The country tightened export controls on semiconductors from the United States last year.
The servers were reportedly bound for export to another Asian country. Zulkifli declined to disclose the shipment's origin, the chip manufacturer, or its final destination, stating the investigation is ongoing. A local logistics company is assisting authorities.
This case aligns with broader U.S. efforts to restrict advanced semiconductor exports through regional hubs like Malaysia and Thailand to curb diversion.