Amid uncertainties surrounding upcoming tariffs from the U.S., leading chip manufacturers in Malaysia have paused their investment and expansion plans.
Investment Pause Due to Tariffs
Wong Siew Hai, President of the Malaysia Semiconductor Industry Association, noted that companies are waiting for the U.S. government to extend tariff exemptions for semiconductors past the August 1 deadline. He stated, “That situation, if it’s clear, then I think investments will continue. Everyone is waiting to see how it all plays out.”
Export Goals of Malaysia's Semiconductor Industry
Malaysia aims to increase its exports to 1.2 trillion ringgit (about $282 billion) by 2030. In 2024, the country sold over 575.45 billion ringgit worth of semiconductors, equivalent to around $135 billion. However, to reach these targets, Malaysia will need a workforce of at least 300,000 people.
International Initiatives Involving China
Facing a skilled labor shortage, Malaysia is turning to international recruitment to meet demand. The country is home to multiple chip-packaging facilities for Intel, GlobalFoundries, and Infineon Technologies. Additionally, the nation is encouraging Chinese companies to build data centers as part of its strategy to attract high-quality foreign investments.
The unpredictability of U.S. tariff policy remains a key factor influencing investments in Malaysia's semiconductor industry, as the country continues to take measures for growth and expansion in the sector.
