Malaysia's Semiconductor Sector Gains from US-China Tech Tensions

Amid the escalating US-China tech war, Malaysia's semiconductor industry is poised for significant growth as companies look for alternatives to China. Experts, including Wong Siew-hai, president of the Malaysia Semiconductor Industry Association, emphasize that Malaysia's strategic neutrality makes it an attractive destination for semiconductor operations, allowing firms to serve the US, China, and global markets. The Malaysian government is backing this transition with its National Semiconductor Strategy, which includes a substantial investment of RM25 billion (approximately USD 5.6 billion) to enhance capabilities in chip design and manufacturing over the next decade. As US restrictions on China create supply chain gaps, Malaysia is increasingly seen as a key player in filling these needs, with many products previously manufactured in China now relocated to Malaysia. The country's semiconductor exports reached USD 65.5 billion in 2023, reflecting its growing significance in the global market. With its established infrastructure and commitment to development, Malaysia aims to solidify its position as a semiconductor powerhouse.