Malaysia Discusses Absorbing U.S. Chip Tariffs with Companies
Malaysia is discussing with chip companies based in the country whether they can absorb the impact of potential U.S. tariffs on semiconductors, its trade minister said, as it looks to hedge against risks to its export-driven economy. The Southeast Asian nation is home to a large semiconductor industry, including top U.S. multinationals such as Intel and GlobalFoundries, and is one of the top exporters of chips to the United States. Malaysian data centres are seen as unaffected by US restrictions due to strong demand for AI in the sector.
- This strategy highlights the adaptability required for companies operating in a rapidly changing global landscape, where trade tensions can have far-reaching consequences on supply chains and industry competitiveness.
- What implications will this approach have on Malaysia's long-term economic growth and its position as a major hub for data centres and AI factories in Southeast Asia?