범죄학자들은 AI 칩 밀수 사건이 증가하는 것이 첨단 가속기 대상 수출 통제 회피 시도의 주요 경고 신호라고 경고한다.

The recent seizure of advanced artificial intelligence chips, including those manufactured by Nvidia, should serve as a major warning sign to Malaysian authorities, according to criminologist P Sundramoorthy of Universiti Sains Malaysia. He noted that the June seizure and reports of other incidents indicate that organised actors are targeting Malaysia as a potential transhipment hub to circumvent trade curbs and smuggle high-value chips to China.

Sundramoorthy explained that Malaysia possesses attractive characteristics for transnational criminal networks, including major airports and ports, an extensive logistics network, free trade zones, and a sophisticated semiconductor and electronics industry. “These are legitimate economic advantages, but the same characteristics can also create opportunities for criminal exploitation,” he said. From a criminological perspective, such cases signal that organised actors may be testing Malaysia’s vulnerabilities as a transit point. This could mark a shift from conventional smuggling towards strategic-technology trafficking, where criminal syndicates exploit legitimate supply chains rather than operating outside them. False declarations, intermediary firms, complex ownership structures, and transhipment arrangements can make illicit transactions appear legitimate and harder to detect.

Despite these risks, Sundramoorthy emphasized that the seizures demonstrate the effectiveness of Malaysia’s enforcement authorities, particularly the customs department, in foiling exploitation attempts. “The criminological concern is therefore not simply the number of seizures, but whether there is evidence of a recurring network, common facilitators, repeated companies, financial connections or the systematic exploitation of Malaysian logistics infrastructure,” he told FMT.

The issue extends beyond Malaysia’s borders. In late August, Taiwan charged nine individuals, including employees of Nvidia and Super Micro, with alleged involvement in illegally exporting AI servers to China. As the world’s largest producer of advanced AI chips, Taiwan has seen its exports restricted by the United States, which has banned the export or sale of these semiconductors to China without a licence since 2022. Domestically, Malaysian customs foiled an attempt in June to smuggle 72 server units containing advanced AI chips worth RM52.9 million through Kuala Lumpur International Airport (KLIA). The units were bound for another Asian country, though further details were withheld. Similarly, Singapore revealed last year that Nvidia AI chips were shipped from the US to the city-state before heading to Malaysia, leaving their final destination unclear. FMT has contacted the customs department for data on AI chip seizures over the past year.

IT expert T Murugason attributed the persistent smuggling attempts to sustained demand for Nvidia chips in China, despite Beijing’s recent advancements in the sector. “Nvidia’s dominance comes from three key strengths: powerful AI chips, software that developers depend on, and a strong supply-and-partner ecosystem that makes switching difficult. Together, these create a cycle that continues to drive demand,” he said. Murugason warned that failing to address AI chip smuggling appropriately could land Malaysia in diplomatic and regulatory hot water, noting that the issue has evolved into a geopolitical battleground between the US and China.

Sundramoorthy echoed these concerns, stressing that Malaysia must avoid becoming an enforcement proxy for any foreign nation. Instead, the country should preserve its sovereignty by ensuring its territory and logistics infrastructure are not exploited by illegal networks. “The key principle should therefore be: ‘Malaysia decides according to Malaysian law, but Malaysia cooperates internationally.’ This allows us to remain sovereign while recognising that transnational technology trafficking cannot be effectively addressed through unilateral action,” he said.

To better detect future smuggling attempts, Sundramoorthy urged authorities to enforce stricter end-user and end-destination verification processes, particularly for high-value chips. “A declaration that equipment is merely transiting Malaysia should not automatically be accepted at face value where the goods are subject to strategic controls or originate from highly sensitive technology supply chains,” he advised. He also called for enhanced information-sharing among domestic enforcement agencies and intelligence coordination with relevant international jurisdictions. Clarifying that this does not mean ceding policy control to foreign nations, he stressed the need to close regulatory gaps that transnational crime networks exploit. “Investigators should also ask who organised the transaction, who financed it, who provided the documentation, who the intended end-user was and whether Malaysian companies knowingly or unknowingly acted as facilitators,” he concluded.