Malaysia discusses impact of US chip tariffs with companies
The move comes as the country looks to protect its semiconductor industry and export-driven economy.
Malaysia is engaging with its semiconductor industry to address the potential impact of US tariffs on chips. The US has signalled its intention to impose tariffs of up to 25% on semiconductors, which could significantly affect Malaysia, one of the top exporters of chips to the US Last year, Malaysia shipped $16.2 billion worth of chips, making up nearly 20% of US semiconductor imports.
Trade Minister Tengku Zafrul Aziz said the government is in talks with companies to see if they can absorb the higher costs caused by the tariffs. The discussions are focused on whether consumers or companies will bear the increased expenses. While the government has not yet decided whether it will provide financial support, Malaysia’s strong semiconductor sector, which includes US giants like Intel and GlobalFoundries, remains a critical part of the economy.
Despite concerns over the tariffs, Tengku Zafrul expressed confidence that Malaysia’s data centres would not be affected by new US export restrictions on advanced chips. The country has become a major hub for data centres, attracting investments from companies such as Microsoft, Google, and Amazon. The growth of AI-related demand is expected to drive further expansion, and Tengku Zafrul indicated that the sector’s trajectory is strong enough to absorb any new challenges.
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