Malaysian customs said Wednesday it had seized about 49.5 million ringgit (US$12.11 million) worth of advanced artificial intelligence chips this month at the country's main airport, CNA reported¹.

On Oct. 15, officers found 30 server units containing advanced AI chips during an inspection at Kuala Lumpur International Airport's free trade zone, airport customs director Aspalila Ag Tuah told reporters, according to CNA¹.

Malaysia imposed export controls last year on the movement of advanced AI chips of U.S. origin after U.S. pressure to limit their flow into China, CNA reported¹.

Initial investigations found the shipment originated in an Asian country and was to be re-exported to another country in Asia, a step that required a trade permit, Aspalila said¹.

"The servers were falsely declared as electronic components... and shipped through Malaysia to ensure there would be no restrictions," Aspalila said, according to CNA¹.

A Malaysian firm that facilitated the shipment has been called in to assist the investigation, she said¹.

The Oct. 15 cargo is suspected to involve a network tied to a similar smuggling attempt stopped in June, Aspalila said¹. She said at least five cases were linked to the syndicate, involving chip seizures worth more than 100 million ringgit in total, and declined further details because the probe is ongoing¹.

Reuters published a report on the same customs announcement; its full article could not be read².