TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
TFIGlobal
TFIGlobal
No Result
View All Result

Malaysia emerges as the biggest winner of the US-China semiconductor war

Abhyoday Sisodia by Abhyoday Sisodia
January 29, 2022
in Indo-Pacific
Reading Time: 3 mins read
0
Malaysia Semiconductor Industry China
476
VIEWS
Share on FacebookShare on Twitter
Become a Patron!

The South-East Asia region is fast turning into a fulcrum of semiconductor manufacturing as the world moves away from the Chinese manufacturing mess. While countries like Singapore and Vietnam are trying in their capacities to capitalise on the exodus of industries from China; now Malaysia is making a dark horse entry into the semiconductor market.

Analysts have for a long time argued the possibility of ASEAN nations tapping into the exodus of hi-tech industries away from China but were not confident in the industrial capacities of these nations to fill the technological gap. However, the US-China semiconductor spat has provided the very opportunity to one of these Southeast Asian (SEA) nations to prove the analysts wrong.

Also Read

Biden stole $40 billion from small restaurants and businesses to send aid to Ukraine

The dollar is officially DEAD now

Malaysia is becoming an attractive destination to benefit from the semiconductor business due to the trade war and geopolitical difficulties between the United States and China. With the US placing export restrictions on China’s major semiconductor businesses, according to PublicInvest research analyst, Chong Hoe Leong, Malaysia’s technology sector stands to prosper from the US-China trade war.

Malaysia: A possible SEA’s premier semiconductor hub

According to Chong, the dispute between the United States and China will benefit Malaysia, which is the world’s largest producer of semiconductor assembly. “This is good news for the Malaysian technology sector which is predominantly in automated testing equipment (ATE) and outsourced semiconductor assembly and test (OSAT) segments,” he told the Malaysian publication.

Many local companies, like Malaysian Pacific Industries Bhd, Mi Technovation Bhd, and Inari Amertron Bhd, have lately established presence in China, according to him. “This will ride the companies on the technology boom as OSAT and ATE segments are part of the semiconductor chain,” he added.

For the time being, ATech ED and CEO Lee Chong Yeow said he finds no direct benefit, but foreign firms, such as those from the United States, will gradually come over to Malaysia for electronic manufacturing services.

Meanwhile, CGS-CIMB Research claims that despite increased nationalism and localisation in the global semiconductor sector, Malaysia remains appealing. CGS-CIMB was also happy to see companies like Skyechip Sdn Bhd use MNC investment to train local personnel and expand their capabilities in integrated circuit design and silicon intellectual property.

China’s falling fortunes

It is all about supply chains. Like any other country, for China too, semiconductors are an indispensable product. From car batteries to laptops to smartphones to household appliances to gaming consoles, and everything in between, semiconductors are indispensable in consumer electronics.

However, China is struggling to meet local semiconductor development, ever since the Trump administration crippled its electronics industry with a ban on the export of American-designed models to China. Huawei and SMIC were cut to size after the Trump administration blacklisted these companies and refused to sell semiconductors to them.

Read more: After discarding China, Singapore makes a strong semiconductor push

China is trying to build a local semiconductor industry, but it is simply not taking off, as going self-reliant in such sophisticated technology is not a cakewalk. Now, if a country like Malaysia goes all out to develop a huge semiconductor industry of its own, then Beijing’s crisis will only worsen as the supply chains of these crucial chips will get localised in a country trying to decouple from China.

The Semiconductor Industry Association (SIA) predicts that the worldwide semiconductor industry will rise by 9% year over year in 2022, owing to increased demand. Furthermore, most Malaysia SIA (MSIA) members are currently operating at virtually full capacity in order to complete outstanding orders. According to CGS-CIMB, labour shortages in Malaysia’s semiconductor industry could stymie growth and new investment.

“According to a survey carried out by MSIA at the end of last year involving 70 companies, the Malaysian semiconductor industry needed at least 23,000 new workers across all levels, ranging from engineers to technicians and operators in 2022,” it said as reported by the publication.

Nonetheless, according to CGS-CIMB, MSIA president Datuk Seri Wong Siew Hai is negotiating with the government on a short-term solution that will allow a new group of migrant workers to come in and fill the positions. Going ahead, we can say that Malaysia has a huge prospect to make sure that it not only becomes a central player in semiconductors in ASEAN but also replaces a larger fraction of China’s manufacturing, thereby becoming an international supply chain hub for the same.

Tags: ChinaMalaysiaSemiconductor Supply ChainShort takesSouth East AsiaUSA
ShareTweetSend
Previous Post

 ‘Where is Peng Shuai?’ The Scott Morrison effect on Tennis Australia is already visible

Next Post

With a 13 trillion Won IPO LG Energy Solutions flattens China’s battery empire

Also Read

The dollar is officially DEAD now

The dollar is officially DEAD now

May 22, 2022
China has created a trench between itself and Russia, and it’s going to end badly for China

China has created a trench between itself and Russia, and it’s going to end badly for China

May 21, 2022
Kishida’s fatal mistake has put entire Japan at severe risk

Kishida’s fatal mistake has put entire Japan at severe risk

May 21, 2022
Montenegro was a Chinese colony. And then Dritan Abazovic became the Prime Minister

Montenegro was a Chinese colony. And then Dritan Abazovic became the Prime Minister

May 21, 2022
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
Europe to activate Nord Stream 2 gas pipeline very soon   

Europe to activate Nord Stream 2 gas pipeline very soon  

May 14, 2022
Qatar scraps its LNG deal with Germany at the last minute citing new conditions

Qatar scraps its LNG deal with Germany at the last minute citing new conditions

May 11, 2022
China makes the last-ditch effort to prevent its faulty weapons from getting exposed in Ukraine

China makes the last-ditch effort to prevent its faulty weapons from getting exposed in Ukraine

May 10, 2022
‘Slovakia’s food is for Slovakians,’ Slovakia’s trade restrictions leave EU fuming

‘Slovakia’s food is for Slovakians,’ Slovakia’s trade restrictions leave EU fuming

May 14, 2022
China could stage a hostile takeover of Japanese semiconductor firms to heal its wounds

China could stage a hostile takeover of Japanese semiconductor firms to heal its wounds

May 7, 2022
Europe to activate Nord Stream 2 gas pipeline very soon   

Europe to activate Nord Stream 2 gas pipeline very soon  

We predicted one month ago that Biden will say sorry to MBS. It’s happening in 10 days

We predicted one month ago that Biden will say sorry to MBS. It’s happening in 10 days

Turkey spoils the big NATO unification party

Turkey spoils the big NATO unification party

Biden can solve the baby formula crisis with a click of his finger, but he is exacerbating it

Biden can solve the baby formula crisis with a click of his finger, but he is exacerbating it

European Union comes up with a clever plan (to bypass its own sanctions on Russia)

European Union comes up with a clever plan (to bypass its own sanctions on Russia)

The Ukraine war is slowly but surely debt-trapping the EU as Germany presses the panic button

The Ukraine war is slowly but surely debt-trapping the EU as Germany presses the panic button

May 22, 2022
US economy is all set to suffer ten big setbacks in the next six months

US economy is all set to suffer ten big setbacks in the next six months

May 22, 2022
Biden stole $40 billion from small restaurants and businesses to send aid to Ukraine

Biden stole $40 billion from small restaurants and businesses to send aid to Ukraine

May 22, 2022
The dollar is officially DEAD now

The dollar is officially DEAD now

May 22, 2022
UK has officially become the sick man of Europe again

UK has officially become the sick man of Europe again

May 22, 2022
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2022 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa

©2022 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.