Malaysia Seizes $12.11 Million in AI Chips at Kuala Lumpur Airport
Customs said 30 servers with advanced AI chips were falsely declared as electronic components, and the case may be tied to five other attempts.
Malaysian customs seized 30 server units carrying advanced AI chips at Kuala Lumpur International Airport, with the shipment valued at about $12.11 million, according to Reuters. The inspection took place on October 15.
The servers had been falsely declared as electronic components, customs said. The consignment originated in one undisclosed Asian country and was bound for another.
Aspalila Ag Tuah, the airport's customs director, set out the details of the seizure. A Malaysian company that helped move the servers is cooperating with the investigation, authorities said.
Officials believe the attempt is linked to at least five other similar cases involving chips worth nearly $25 million.
Earlier seizures
In June 2026, Malaysian customs seized $13 million worth of chips that had also been falsely declared as computer components. The United States has restricted AI chip exports to several countries since at least the Biden administration, and Nvidia has been drawn into related probes: Singaporean authorities arrested three men last year over a separate smuggling attempt, and Taiwanese authorities detained an Nvidia employee earlier this year over another alleged attempt.
Quick answers
Where were the AI chips seized?
At Kuala Lumpur International Airport, from 30 server units falsely declared as electronic components.
What was the shipment worth?
About $12.11 million, according to Malaysian customs.
Is the case connected to other smuggling attempts?
Authorities believe it is linked to at least five other similar cases involving nearly $25 million worth of chips.