MALAYSIA TO BOOST SEMICONDUCTOR EXPERTISE AS US RESCINDS CHIP EXPORT CURBS

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 12 (Bernama) -- Malaysia can have greater access to more advanced semiconductor chips following Washington’s move to rescind curbs on chip exports, a move that can propel it to move beyond its current strength in midstream packaging and testing into higher-value upstream chip design.

Upscaling and eventual expertise in chip manufacturing would go a long way in solidifying Malaysia’s position as the world’s sixth-largest exporter of semiconductors.

Chur Associates founder and managing partner Chris Tan said enhanced chip performance would also strengthen Malaysia’s capabilities in data centres, which already benefit from a cost-effective and resource-friendly environment.

“Trump’s new approach would require negotiations on a country-to-country basis, (and) his preference is for a deal eventually,” he said in response to the United States’ (US) move to rescind curbs on chip exports imposed previously by the Biden administration.

This is very much like his move to impose tariffs, “which has drawn everyone to his table and not through a clear set of defined rules on sharing US artificial intelligence (AI) technological advancement,” Tan said.

It was reported on Wednesday that the Trump administration plans to revise a Biden-era rule that restricted AI chip exports, which aims to limit China’s access while keeping advanced computing power within the US and its allies.

However, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid opined that the intent to restrict access to US-made AI chips remains unchanged; the focus now lies on how it will be implemented, as the current rulings (by Biden) are seen as cumbersome.

“I suppose the government has been proactively managing the industry landscape quite well. The case in point would be the collaboration with ARM Holdings Plc for semiconductor-related licenses and know-how,” he added.

Mohd Afzanizam said such collaboration would accelerate the ability of Malaysian companies to produce their chips.

On whether Malaysia is investing enough in its semiconductor manufacturing capabilities to reduce reliance on foreign technologies, he said the answer remains uncertain.

However, he noted that Malaysia’s long-standing presence in the outsourced semiconductor assembly and test (OSAT) segment suggests more needs to be done for existing players to scale and move up the value chain.

Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said Malaysia must safeguard technology, and companies must comply with all restriction requirements.

He emphasised that Malaysia must be both competitive and compliant to strengthen its global leadership and reinforce its position as a trusted semiconductor hub.

-- BERNAMA