Malaysian customs foil $13 million AI chip smuggling bid

Malaysian authorities foiled an attempt to smuggle advanced AI chips through the country's main airport, customs officials said on Friday, in a case worth nearly $13 million.

A team raided Kuala Lumpur airport's free trade zone on June 5 and seized 72 servers that were reportedly bound for export to another Asian country. Malaysia tightened export and transshipment controls on chips last year, requiring a strategic trade permit and advance notification if there is suspicion of misuse or diversion.