Where routers offload their AES for wifi?

There is no way tiny MISP single core handle AES-encrypted wifi over 300Mbps.
is that done on wifi chip level?

It depends…
Yes, most wlan drivers can offload the WPA encryption to dedicated hwcrypto engines as part of the WLAN chipsets (even more so for 802.11ac chipsets than previous generations), but there are also some corner cases that require falling back to software implementation in the kernel.

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