Malaysia seizes US$12M in smuggled AI chips at KL airport, tightens export controls

Malaysian customs seized 49.5 million ringgit (US$12 million) worth of advanced AI chips at Kuala Lumpur International Airport on October 15, targeting a syndicate smuggling high-performance semiconductors. The seizure follows Malaysia's 2025 export controls on US-origin AI chips, imposed under US pressure to curb flows to China. This indicates ongoing enforcement gaps and the persistence of smuggling networks, underscoring the challenge of controlling advanced chip transshipment.

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