SEPANG: The Customs Department has foiled an attempt to use Malaysia as a transit point to smuggle advanced artificial intelligence (AI) chips worth RM49.5 million to another Asian country.

The attempt was uncovered on Oct 15 when Customs officers seized 30 server units containing advanced AI chips at a warehouse in Kuala Lumpur International Airport's (KLIA) Free Commercial Zone.

KLIA Customs director Aspalila AG Tuah said the servers had been brought into Malaysia from an undisclosed Asian country under a single air waybill and were intended for re-export to another Asian country.

She said the syndicate attempted to evade detection by declaring the servers as ordinary electronic components.