Local Semiconductor Industry Benefits From US-China Trade Tensions – MSIA

KUALA LUMPUR, Feb 17 (Bernama) -- The Malaysian semiconductor industry stands to benefit from the impact of United States (US) restrictions on China, said Malaysia Semiconductor Industry Association (MSIA) president Datuk Wong Siew Hai.

He explained that US restrictions, particularly those imposed on national security grounds and tariffs, have prevented many semiconductor equipment and products from being shipped to and from China.

"Many US companies were also restricted from purchasing from China, creating a need for alternative solutions, which is where the China Plus One strategy came into play," he said at the China Conference Southeast Asia here today.

The China Plus One strategy refers to companies that previously relied heavily on China for manufacturing but are now diversifying their operations by expanding to at least one additional country.

Wong noted that a similar shift is occurring with the US Plus One and Europe Plus One strategies.

"As a result, many products that were previously manufactured in China for global markets have been relocated to Malaysia. Similarly, restrictions on semiconductor equipment have created supply chain gaps, which Malaysia has been able to fill," he said.

He shared that some supply chain components previously sourced from China are now restricted, creating opportunities for Malaysia to develop those capabilities domestically.

"Additionally, companies are increasingly seeking to mitigate risks by establishing operations in neutral, non-aligned countries. Malaysia fits this profile well, making it an attractive destination for businesses looking to serve not only the US and China but also the rest of the world," he added.

-- BERNAMA