China busts chip smuggling operation from Hong Kong amid semiconductor supply crunch
- Customs officers found and seized a total of 256 Intel CPUs taped to a driver’s chest and calves in a border inspection on June 16
- Another batch of 52 Intel CPUs was found in another inspection 10 days later
Chinese customs said they have busted two recent cases of Hong Kong drivers trying to smuggle computer chips into mainland China via the Hong Kong-Zhuhai-Macau Bridge, as demand for semiconductors soars amid a global shortage.
Customs officers found and seized a total of 256 Intel central processing units (CPUs) taped to a driver’s chest and calves in an inspection on June 16, according to an official report.
The driver was stopped and searched because he “acted abnormally and looked nervous” during a normal inspection at the inbound entry lane into mainland China, the customs authority said in a video released this week.
Officers intercepted another batch of 52 smuggled Intel CPUs in another inspection 10 days later, when a driver tried to sneak in the chips by stuffing the package in between the two front seats of the vehicle.
Both cases were under further investigation, customs said.
The chip-smuggling cases come amid a global semiconductor shortage that has caused severe disruption to auto production around the globe. Despite vows from global foundries like Taiwan Semiconductor Manufacturing Co to ramp up capacity as soon as possible, the shortage continues unabated, with many customers in China scrambling to secure supplies from the fabs, according to industry insiders.
