Malaysia Leads Global Semiconductor Industry, Takes Chance Amid US-China Conflict


The ongoing trade war between the United States and China has elevated Malaysia to a surprise winner in the global semiconductor industry.

Due to competition from two global powers, manufacturers in Malaysia are taking advantage of the opportunity to increase their operations and expand the market globally.

According to the FT, the Southeast Asian country is taking historic opportunities to collaborate with multinational companies and improve its commercial ecosystem in the sector.

Escalating tensions between the US and China have left multinational chipmakers with the challenge of diversifying supply chains. Malaysia is ready and able to meet the demand.

Intel and STMicroelectronics Malaysia have strategically increased their semiconductor capabilities over the past few years.

The NYT is strengthening Malaysia's trade ties as well as its focus on talent development in areas such as artificial intelligence (AI) and machine learning (ML) as these can attract new alternatives to China and the United States.

In addition, the domestic investment agency MIDA plans to offer additional incentives for companies investing in automotive AI and it can recognize innovations capable of attracting more global businesses.

Operational flexibility and practical risk management have also strengthened the Malaysian semiconductor industry.

In addition, the country's mature electronic ecosystem and Putrajaya's rapid modernization are able to attract more foreign investors into the country and strengthen its position at the forefront.

The US-China trade war has undoubtedly caused turmoil in global markets and now it has drawn an unexpected winner to the fore.