Malaysia intercepted $12.2 million shipment of servers with AI chips suspected of violating export controls

Malaysia’s customs department said Wednesday it had seized 30 servers equipped with advanced artificial intelligence chips in a suspected export-control violation. Officials believe a syndicate is using Malaysia as a transit hub to re-export the chips to another Asian country. Malaysia introduced permit requirements for the export, transit and transshipment of high-performance AI chips of U.S. origin last year, under pressure from the U.S. to ensure sensitive technology isn’t rerouted to China through third countries. Washington has sought to restrict China’s access to advanced semiconductors to curb Beijing’s AI and military capabilities.

Source: Fortune Crypto