Smugglers Caught with 780 Intel CPUs Worth Over $137,000

[AleksandarK]

Recently, Chinese customs at Gongbei Port, which connects Macau and Zhuhai, made a significant interception: 780 Intel processors that smugglers were attempting to sneak in. Smugglers in China are known for their innovative tactics to bypass customs. There are many ways that these smugglers try to avoid paying customs, and that is strapping these goods on themselves. In this latest incident, the smugglers chose a seemingly clever approach by stashing the processors within a cross-border bus's engine. But passing through metal detectors with such a hefty amount of metal is risky, and even creative disguises can't shield processors from keen-eyed detectors.

After examining its digital imagery, the Gongbei Port customs officials grew suspicious of the bus. A detailed engine inspection unveiled the smuggled goods: 780 Intel processors, cleverly hidden. The estimated value of the seized items is over one million yuan, approximately $137,341. Although the exact models of the confiscated chips are not entirely clear, they appear to be from the 12th Generation Alder Lake or 13th Generation Raptor Lake series. China's vast grey market for computer components is both a boon and a bane. While CPUs, GPUs, and SSDs are available at tempting prices, these deals often lack the manufacturer's warranty. So, while the initial savings might seem appealing, the absence of warranty poses risks that could offset those initial benefits in the long run.



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[LabRat 891]

Front Engine or Rear Engine bus?
So, the processors were found "Front Side, Bus"

 

[kondamin]

If my Search is giving good results it stuff is taxed at 6% in china

looks like a high risk low reward endeavour

I get why someone in Brasill would want to do that over there????

 

[konga]

If my Search is giving good results it stuff is taxed at 6% in china

looks like a high risk low reward endeavour

I get why someone in Brasill would want to do that over there????

My guess: it may be easier to pull off in China, which reduces the risk part of the risk/reward calculation. We only see stories about the people who are caught—who knows how many people are doing this and aren't caught.

 

[Gucky]

Who is paid to place every single CPU so neatly?

 

[kondamin]

Who is paid to place every single CPU so neatly?

probably a low ranked pencil pusher, like they are used everywhere

 

[Tek-Check]

Imagine how many smugglers are NOT discovered...

 

[pressing on]

Front Engine or Rear Engine bus?
So, the processors were found "Front Side, Bus"

Sticking the 'Intel Inside' logo on the engine was not a good idea...

 

[ixi]

Cheap cpu's, was not worth it! If you do it, do it huge. 137k rookie numbers!

 

[Assimilator]

As usual, TPU's summarised version is wrong; putting CPUs with metal heatspreaders inside something else made of metal of course allowed the smugglers to get around metal detectors, but the Chinese customers officials instead used digital imaging to detect something was fishy, and then physical inspection to confirm their suspicions.

Front Engine or Rear Engine bus?
So, the processors were found "Front Side, Bus"

Well done!

 

[Nanochip]

So what does china do with the confiscated intel processors? Are they destroyed? Are they sent to labs for reverse engineering ?

 

[WonkoTheSaneUK]

Who is paid to place every single CPU so neatly?

Paid? That's the intern's job!

 

[phanbuey]

It was actually 800 CPUs but 20 disappeared in the process.

 

[AnotherReader]

So what does china do with the confiscated intel processors? Are they destroyed? Are they sent to labs for reverse engineering ?

China isn't North Korea. They have tens of millions of legitimate Intel CPUs that they can analyze. However, they need cutting edge semiconductor fabs far more than leading edge designs. CPU designers can be hired as Apple did and China's resources dwarf that of Apple.

 

[Makaveli]

"While CPUs, GPUs, and SSDs are available at tempting prices"

Out of those 3 items the only one that would concern me about warranty would be the GPU. Never had an issue where I need to make a warranty claim on a cpu or ssd ever.

 

[Divide Overflow]

Wait, doesn't Intel have assembly plants for their processors in Chendu, China?
So would these be made in China and smuggled back into China?

 

[qlum]

If my Search is giving good results it stuff is taxed at 6% in china

looks like a high risk low reward endeavour

I get why someone in Brasill would want to do that over there????

My guess there is more to it than tax bureaucracy could make things more difficult, especially if the cpu's are grey market / used to begin woth.

 

[MarsM4N]

Probably just the little fish who thought he could cheap out on bribe. The big smuggling is done in shipping containers.

 

[Eivor]

This kind of news is not surprising in China, because the 15%+ tariff is enough to make these smugglers take risks. There is also the warranty problem mentioned in the news, in fact, there is no need to worry, one is because the probability is very low, and the other is to ensure honest management, otherwise you will not be able to do business in the future.

Spoiler: Original Post

这种新闻在国内已经见怪不怪了，因为15%+的关税足以让这些走私犯提而走险。还有新闻里说的保修问题，其实不用担心，一是因为概率很低，二是要保证诚信经营，不然以后没法做生意了。

 

[Bones]

这种新闻在国内已经见怪不怪了，因为15%+的关税足以让这些走私犯提而走险。还有新闻里说的保修问题，其实不用担心，一是因为概率很低，二是要保证诚信经营，不然以后没法做生意了。

Translation:
"This kind of news is not surprising in China, because the 15%+ tariff is enough to make these smugglers take risks. There is also the warranty problem mentioned in the news, in fact, there is no need to worry, one is because the probability is very low, and the other is to ensure honest management, otherwise you will not be able to do business in the future."


I'm not suprised personally by these attrempts at smuggling but another question was brought up.
What happens to the CPUs?

Well, looks like the local party rep has gotten their hands on some fresh inventory for a song..... Not that you'd expect to buy it the same way either.

 

[95Viper]

Let's keep it on topic.

 

[Nanochip]

China isn't North Korea. They have tens of millions of legitimate Intel CPUs that they can analyze. However, they need cutting edge semiconductor fabs far more than leading edge designs. CPU designers can be hired as Apple did and China's resources dwarf that of Apple.

So what do they do with the confiscated intel processors ?