Malaysia seizes servers with advanced AI chips suspected of violating export controls

KUALA LUMPUR, Malaysia (AP) — 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.

The shipment, worth about 50 million ringgit ($12.2 million), was intercepted at the free trade zone area at the country's main airport during an inspection on Oct. 15, the airport's customs director Aspalila Ag Tuah told reporters.

The servers, which came from an Asian country, were falsely declared as electric components to avoid detection before being reexported to another Asian country without the required permit, she said.

“The syndicate is using Malaysia as a transit destination to ensure there would be no restrictions imposed while the servers are exported to the next destination,” the customs department said in a statement.

Aspalila said the shipment was believed to be linked to a syndicate behind five attempted smuggling operations, including one in June when customs authorities seized 72 servers containing advanced AI chips at the airport’s free trade zone.

She said a Malaysian firm that facilitated the shipment has been called in to assist investigations. She declined to give further details on the origin of the chips or their final destination, saying the case was under investigation.

Crates containing seized servers with advanced artificial intelligence chips are displayed during a press conference at customs department headquarters in Sepang, Malaysia, Wednesday, Oct. 28, 2026. (AP Photo/Vincent Thian)

Malaysian customs officials hold photographs of seized servers containing advanced artificial intelligence chips during a press conference at its headquarters in Sepang, Malaysia, Wednesday, Oct. 28, 2026. (AP Photo/Vincent Thian)

Malaysian customs personnel remove plastic wrapping from crates containing seized servers with advanced artificial intelligence chips at its headquarters in Sepang, Malaysia, Wednesday, Oct. 28, 2026. (AP Photo/Vincent Thian)

Malaysian customs officers show a seized server containing advanced artificial intelligence chips to the media at its headquarters in Sepang, Malaysia, Wednesday, Oct. 28, 2026. (AP Photo/Vincent Thian)

A Malaysian customs officer stands beside a seized server advanced containing artificial intelligence chips at its headquarters in Sepang, Malaysia, Wednesday, Oct. 28, 2026. (AP Photo/Vincent Thian)

Shares of Wendy’s jumped 15% at the opening bell Wednesday after noted investor Nelson Peltz made an offer to buy the struggling burger chain.

Wendy’s shares are down 25% in the past year following a years-long decline. The chain, founded in 1969 by Dave Thomas and named after his daughter, is known for its square burgers and Frosty desserts. But same-store sales, or sales at restaurants open at least a year, have declined for more than two years. Those sales fell during the first two quarters of 2026.

Peltz’s Trian Fund Management and several partners are offering Wendy’s $7.35 per share in cash, or a premium of nearly 19% over the stock’s closing price on Tuesday.

In a letter to the company’s board of directors, Peltz said going private “will deliver the best outcome for the broader stakeholder base.”

“Wendy’s sits at a critical juncture," Peltz wrote. "The external environment has become increasingly challenging given the significant pressures on the U.S. consumer, economic uncertainty, persistent commodity inflation and intensifying competition, particularly within the QSR (quick service restaurant) burger category."

Peltz has invested in companies from Procter & Gamble and Disney to DuPont. According to a regulatory document filed Wednesday, Trian’s stake in Wendy’s totals 16.3%.

Wendy’s, based in Dublin, Ohio, declined to comment. The chain is scheduled to report its quarterly financial results next week. Analysts expect Wendy’s to post earnings of 9 cents per share on sales of $531 million on average.

Shares rose 91 cents to $7.05 Wednesday.

FILE - A sign stands over a Wendy's restaurant, Feb. 25, 2021, in Des Moines, Iowa. (AP Photo/Charlie Neibergall, File)