KUALA LUMPUR: Malaysia may gain greater access to high-performance semiconductor chips following Washington’s move to rescind export restrictions, positioning the country to move beyond its midstream strengths into higher-value segments like upstream chip design.
Industry experts believe this shift could significantly bolster Malaysia’s standing as the world’s sixth-largest semiconductor exporter and catalyse its transition into advanced chip manufacturing and design.
“Enhanced chip access will strengthen Malaysia’s role in data centre development, especially given its cost-effective and resource-efficient environment,” said Chris Tan, founder and managing partner of Chur Associates.
Tan noted that the Trump administration’s revised stance on AI chip export restrictions — originally implemented by the Biden administration to curb China’s access — signals a preference for bilateral negotiations rather than a rules-based regime.
“Like his previous tariff strategies, this approach seems aimed at drawing stakeholders to the table without clear global guidelines for sharing US AI technological advancements,” he added.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that while the intent to limit China’s access to US-made AI chips remains, the enforcement strategy under Trump is likely to be less cumbersome. He also pointed to Malaysia’s proactive stance, citing its collaboration with ARM Holdings Plc to gain semiconductor-related licenses and know-how as a critical step forward.
“This partnership could accelerate local chip design capabilities, but the broader question is whether Malaysia is investing enough to reduce reliance on foreign technologies,” he said.
Afzanizam noted that Malaysia’s deep-rooted role in outsourced semiconductor assembly and testing (OSAT) shows promise but underscores the need for further investment and policy support to help local firms move up the value chain.
Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai added that while seizing new opportunities, companies must remain compliant with international restrictions. “Malaysia must be both competitive and compliant to maintain its global leadership as a trusted semiconductor hub,” he said.–BERNAMA
