Malaysia is stepping up its game in the global semiconductor landscape, aiming to evolve from assembling chips to designing high-tech components, especially for artificial intelligence (AI). Located in Penang, the home to Intel and AMD factories, Malaysia has been pivotal in tech manufacturing, supplying billions worth of semiconductors for various industries, including electronics and healthcare.
However, the nation is grappling with the repercussions of former President Trump's tariffs aimed at protecting U.S. interests. Initially viewed as a strategic choice to circumvent the U.S.-China trade tension, Malaysia's hope was bolstered when Prime Minister Anwar Ibrahim announced a multi-billion dollar initiative to solidify the country’s position in the semiconductor sector.
Recently, Malaysia faced a significant hurdle as the Trump administration imposed a temporary 24% tariff on its exports, part of a broader 10% baseline tariff on goods. While negotiations about the tariffs continue, the threat of a potential 25% blanket levy on semiconductor imports looms large. Experts like Julia Goh from UOB warn that the uncertainty surrounding these tariffs could disrupt Malaysia’s industrial ambitions and push the U.S. to bring chip manufacturing back on home soil, dampening Malaysia's high-tech aspirations.
However, the nation is grappling with the repercussions of former President Trump's tariffs aimed at protecting U.S. interests. Initially viewed as a strategic choice to circumvent the U.S.-China trade tension, Malaysia's hope was bolstered when Prime Minister Anwar Ibrahim announced a multi-billion dollar initiative to solidify the country’s position in the semiconductor sector.
Recently, Malaysia faced a significant hurdle as the Trump administration imposed a temporary 24% tariff on its exports, part of a broader 10% baseline tariff on goods. While negotiations about the tariffs continue, the threat of a potential 25% blanket levy on semiconductor imports looms large. Experts like Julia Goh from UOB warn that the uncertainty surrounding these tariffs could disrupt Malaysia’s industrial ambitions and push the U.S. to bring chip manufacturing back on home soil, dampening Malaysia's high-tech aspirations.
