Malaysia’s semiconductor sector to benefit from ‘neutrality’ amid US-China tech war

Malaysia’s semiconductor industry stands to benefit from the escalating US-China tech war, as trade restrictions steer more companies to consider the Southeast Asian country as a viable alternative in the global chip supply chain, according to experts.

As the US government continues to tighten trade restrictions on China, Malaysia is seeing more opportunities to develop its semiconductor industry, which has advantages in back-end operations such as chip testing and packaging, according to a panel discussion at the China Conference: Southeast Asia 2025 hosted by the South China Morning Post in Kuala Lumpur on Monday.