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Malaysia’s chip sector booms amid US-China tech clash

Recent US tariffs on Chinese imports have strengthened Malaysia’s longstanding role in the semiconductor industry, as multinationals shift production away from China

 Tan Ai Leng
Published Mon, Jul 29, 2024 · 05:00 AM
    • Intel Malaysia's ATP (assembly, testing and packaging) facilities in Penang. The US-based giant was one of the first major multinational tech companies to invest in and expand operations in Malaysia.
    • Intel Malaysia's ATP (assembly, testing and packaging) facilities in Penang. The US-based giant was one of the first major multinational tech companies to invest in and expand operations in Malaysia. PHOTO: INTEL MALAYSIA

    [KUALA LUMPUR] Malaysia, already a key player in the chip sector, supplies 13 per cent of the global demand for assembly, testing and packaging (ATP) services. It is quite possibly also the region’s biggest beneficiary of the supply chain shifts prompted by US-China tensions.

    This South-east Asian nation is one of the world’s leading semiconductor hubs, standing alongside giants such as Taiwan, South Korea, Japan, the United States and China.

    The recent US tariff hikes on Chinese imports, which have significantly disrupted global supply chains, have further solidified Malaysia’s long-established position in the sector.

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