Servers Containing Advanced AI Chips Seized in Malaysia
Malaysian customs authorities have seized 30 servers equipped with advanced artificial intelligence chips on suspicion of violating export control regulations.
Malaysia's customs department announced the seizure of 30 servers equipped with advanced artificial intelligence chips over suspected export control violations. Officials believe a syndicate was using Malaysia as a transit hub to re-export these chips to another Asian country. The shipment, valued at approximately 50 million ringgit ($12.2 million), was intercepted on October 15 in the free trade zone of the main airport.
Following pressure from the U.S. to prevent the rerouting of sensitive technologies to China through third countries, Malaysia introduced permit requirements last year for the export, transit, and transshipment of U.S.-origin high-performance artificial intelligence chips. Airport customs director Aspalila Ag Tuah stated that the servers, originating from a country in Asia, were misdeclared as electrical components to avoid detection before being re-exported without the necessary permits.
The shipment is believed to be linked to a syndicate connected to five smuggling attempts, including the seizure in June of 72 servers containing advanced artificial intelligence chips in the airport's free trade zone. A Malaysian firm that facilitated the shipment has also been called in to assist with the investigation. Meanwhile, as trade and technology tensions persist between Washington and Beijing, reports indicate that large-scale import approvals for approximately 600,000 advanced Nvidia H200 artificial intelligence chips are awaiting shipment in Hong Kong after being suspended by Beijing.