Semiconductor companies in Malaysia are actively expanding their capacity amid global inventory correction, as the majority of them anticipate there will be surging demand from automotive, cloud computing and telecommunication industries.

Wong Siew Hai, president of Malaysia Semiconductor Industry Association (MSIA), said television, computer and smartphone manufacturers are reducing their orders due to the fear of recession, but demand from other industries remained resilient.

“The fear (of recession) will go away, but capacity expansion takes years to build. In September last year, 6 major companies in Malaysia had difficulties delivering the global order due to limited capacity, hence most companies are expanding now to prepare for the next rebound,” he told The Business Times after the launch of Nomura Global Sharia Semiconductor Equity Fund on Wednesday (July 27).