Malaysia’s semiconductor sector is reportedly benefiting from the ongoing US-China tech disputes.

Companies are looking for alternative chip production locations, and Malaysia’s neutral stance positions it well in the global supply chain.

The country is strong in back-end operations, particularly chip testing and packaging, which is attracting industry interest.

This shift comes as the US imposes stricter trade restrictions on China.

To capitalize on this, Malaysia has been strengthening its semiconductor capabilities through the National Semiconductor Strategy, launched in May 2024.

The initiative includes 25 billion ringgit (US$5.6 billion) in financial support, focusing on chip design, high-end manufacturing, and advanced packaging.