Global chip sales growth momentum to sustain
TA Research reiterated its 'overweight' stance on the semiconductor sector.
PETALING JAYA: The positive momentum of global semiconductor sales, which posted another healthy growth in March, will continue to see strong demand from artificial intelligence, 5G and electric vehicles.
On another front, the plan by the administration of US president Donald Trump to rescind and revise a Biden-era rule that restricts the export of advanced AI chips is positive, said TA Research.
'We view this development positively, as it could provide Malaysia with greater access to advanced technologies.
'This is particularly in key industries such as data centres.
'In addition, the potential relaxation of export controls may attract more foreign investment and partnerships, further strengthening Malaysia's position in the global semiconductor supply chain,' TA Research said in a report yesterday.
According to the research firm, the ongoing trade tensions between the United States and China could create greater trade diversion opportunities for Malaysia under the China Plus One strategy.
Meanwhile, the government recently announced the eligibility criteria for local companies seeking to participate in the advanced chip design framework under Malaysia's collaboration with UK-based Arm Holdings plc.
'We view this latest development positively.
'This is because it brings us one step closer to helping local companies move up the value chain in the global semiconductor industry.'
In March, global semiconductor sales reached US$55.9bil, marking the 17th consecutive month of year-on-year (y-o-y) sales recovery.
TA Research added the y-o-y improvement was driven by all regions except Europe.
The Americas led the growth, followed by the Asia-Pacific region, China and Japan.
According to the Semiconductor Industry Association, the global semiconductor materials market revenue increased by 3.8% y-o-y to US$67.5bil in 2024.
The growth was mainly driven by higher demand for advanced materials used in high-performance computing and high-bandwidth memory manufacturing.
TA Research reiterated its 'overweight' stance on the semiconductor sector.
It has kept its 'buy' calls on Inari Amertron Bhd , Unisem (M) Bhd , Malaysian Pacific Industries Bhd and Elsoft Research Bhd .
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysian Reserve
18 minutes ago
- Malaysian Reserve
KNM proposes RM3.16b debt restructuring, sets creditors' meeting for Aug 11
DEBT-LADEN KNM Group Bhd has issued formal notice to its creditors to convene a court-sanctioned meeting on August 11, 2025, to vote on a proposed scheme of arrangement that forms a central component of the group's wider regularisation plan to exit Practice Note 17 (PN17) status. The scheme – which involves both KNM and its wholly owned unit KNM Process Systems Sdn Bhd (KNMPS) – aims to restructure a combined RM3.16 billion in liabilities as of the June 30, 2023 cut-off date. The Kuala Lumpur High Court has granted the company an order to hold the meeting and extended a restraining order until August 12 to shield the group from legal action by creditors while the restructuring process unfolds. Under the proposed arrangement, creditors will be repaid through a combination of immediate cash proceeds and deferred instruments. The bulk of the initial cash will be sourced from the proposed RM1.3 billion disposal of German-based Deutsche KNM GmbH to Japan's NGK Insulators Ltd. KNM expects RM983.5 million in net proceeds from the sale after deducting transaction costs, escrow requirements and working capital needs. Secured creditors of KNMPS are to be repaid in full in cash upon implementation of the scheme. Unsecured creditors will receive approximately 80.94% of their admitted claims in cash, with the remaining 19.06% to be settled through the issuance of five-year zero-coupon redeemable unsecured loan stocks (RULS). These bonds will not bear interest and will be repaid progressively over five years via a mix of escrowed funds, asset disposals, and internally generated cash. KNM has classified creditors into three groups: secured, unsecured, and intercompany. While secured and unsecured creditors are expected to receive settlements, intercompany balances will only be addressed after other classes are resolved. Some of these balances may ultimately be waived, according to the scheme's terms. The RULS will be listed on the Main Market of Bursa Malaysia under the Exempt Regime, which allows for over-the-counter transfers but not public trading. Redemption will follow a semi-annual waterfall mechanism, using excess cash generated by KNMPS after meeting its six-month working capital needs. Additional funding will come from the potential release of RM156.6 million held in escrow from the German asset sale, along with proposed disposals of other non-core assets in Italy, the UK and Thailand. As part of its restructuring, KNM proposes that the liabilities under the holding company – amounting to RM1.23 billion – be substantially settled via KNMPS. Only RM4.2 million in unsecured claims and RM10.8 million in intercompany dues will be directly addressed by KNMG under the scheme. The proposed arrangement remains subject to the approval of creditors at the August 11 meeting, sanction by the High Court, Bursa Malaysia's clearance for the regularisation plan and bond listing, and shareholders' endorsement of both the restructuring and asset disposal. The group fell into PN17 status in 2022 following severe liquidity challenges, operational delays and audit concerns. It said a comprehensive regularisation plan is in the final stages of formulation and will incorporate both the scheme of arrangement and the German asset disposal. The Court of Appeal is scheduled to hear KNM's appeal for a longer restraining order on September 18. The company's current ad-interim order will remain in place until then, providing a temporary buffer from enforcement actions. –TMR
Malay Mail
35 minutes ago
- Malay Mail
After days of protests, Beijing tells Chinese nationals in LA to avoid trouble spots
BEIJING, June 9 — China's consulate in Los Angeles told its citizens in the area on Monday to strengthen personal security, after unrest in America's second-biggest city. 'Chinese citizens in the region (should) strengthen personal security measures, stay away from gatherings, crowded areas, or places with poor public security, and avoid going out at night or travelling alone,' the consulate said in a statement. They should also 'closely monitor official announcements' and 'raise their safety awareness', it added. Security forces faced off with protesters in the city on Sunday, as unruly protests over federal immigration raids continued for a third day, with President Donald Trump deploying National Guard troops. Trump, who has made clamping down on illegal migration a key plank of his second term, vowed the troops would ensure 'very strong law and order'. The deployment in California — the first over the head of a state governor since the Civil Rights era — was 'purposefully inflammatory,' Governor Gavin Newsom said. The National Guard — a reserve military — is frequently used in natural disasters, and occasionally in instances of civil unrest, but almost always with the consent of local authorities. — AFP
Borneo Post
39 minutes ago
- Borneo Post
Unrest in Los Angeles over immigration raids as troops sent by Trump fan out
A graffiti reads 'Return the Homies' behind Los Angeles police officers deployed next to City Hall as clashes with protesters continue into the night during a protest following federal immigration operations, in Los Angeles, California on June 8, 2025. – AFP photo LOS ANGELES (June 9): Police ordered the public to disperse from downtown Los Angeles after further unrest, with cars torched and security forces firing tear gas at protesters, in the wake of Donald Trump's deployment of National Guard troops to America's second-biggest city. Protests in Los Angeles, home to a large Latino population, broke out on Friday, triggered by immigration raids that resulted in dozens of arrests of what authorities say are illegal migrants and gang members. Critics say the US president — who has made clamping down on illegal migration a key pillar of his second term — was deliberately stoking tensions with his deployment of California's National Guard, a stand-by military usually controlled by the state governor. Demonstrators told AFP the purpose of the troops did not appear to be to keep order, with one calling it an 'intimidation tactic.' 'You have the National Guard with loaded magazines and large guns standing around trying to intimidate Americans from exercising our First Amendment rights,' protester Thomas Henning said. California Governor Gavin Newsom called Trump's order a 'serious breach of state sovereignty' and demanded the president to rescind the order and 'return control to California.' He also urged protesters to stay peaceful, warning that those who instigate violence will be arrested. 'Don't take Trump's bait,' he said on social media platform X. Authorities declared downtown Los Angeles a place of 'unlawful assembly' by late Sunday evening. Local media showed a heavy police presence blanketing mostly deserted streets in various areas. A few protesters remained scattered, with some lobbing projectiles and fireworks according to local aerial TV coverage. Trump called the protesters 'insurrectionists,' and demanded authorities 'ARREST THE PEOPLE IN FACE MASKS, NOW!' 'BRING IN THE TROOPS!!!!' he wrote on his Truth Social platform. At least three self-driving Waymo cars were torched as demonstrators thronged around downtown Los Angeles earlier on Sunday, and local law enforcement deployed tear gas and smoke grenades to disperse protesters. An Australian reporter was hit in the leg with a rubber bullet fired by a police officer while on live television. Her employer 9News said she was unharmed. Los Angeles Police Department (LAPD) officers established containment lines some distance from federal buildings by Sunday afternoon, preventing contact between angry demonstrators and the scores of armed National Guardsmen from the 79th Infantry Brigade Combat Team who had gathered in helmets and camouflage gear. Law enforcement had arrested at least 56 people over two days and three officers had suffered minor injuries, the LAPD said. Police in San Francisco said on Sunday about 60 people had been arrested in similar protests in the northern Californian city. – 'Troops everywhere' – Trump was unrepentant when asked about the use of troops, hinting instead at a more widespread deployment in other parts of the country. 'I think you're going to see some very strong law and order,' he told reporters. Responding to a question about invoking the Insurrection Act — which would allow the military to be used as a domestic police force — Trump said: 'We're looking at troops everywhere. We're not going to let this happen to our country.' US Northern Command, part of the Department of Defense responsible for national defense, said 'approximately 500 Marines… are in a prepared-to-deploy status should they be necessary to augment and support' the ongoing federal operations. The National Guard is frequently used in natural disasters, and occasionally in instances of civil unrest, but almost always with the consent of local authorities. Trump's deployment of the force — the first over the head of a state governor since 1965 at the height of the civil rights movement — was criticized by Democrats, including Kamala Harris. The former vice president called it 'a dangerous escalation meant to provoke chaos.' Newsom said Trump was 'putting fuel on this fire.' 'Commandeering a state's National Guard without consulting the Governor of that state is illegal and immoral,' he said on X. 'California will be taking him to court.' – 'Intimidation' – However, Republicans lined up behind Trump to dismiss the pushback. 'I have no concern about that at all,' said House Speaker Mike Johnson, accusing Newsom of 'an inability or unwillingness to do what is necessary.' Demonstrator Marshall Goldberg, 78, told AFP that deploying Guardsmen made him feel 'so offended.' 'We hate what they've done with the undocumented workers, but this is moving it to another level of taking away the right to protest and the right to just peaceably assemble.' Raids by the Immigration and Customs Enforcement (ICE) agency in other US cities have triggered small protests in recent months, but the Los Angeles unrest is the biggest and most sustained against Trump's immigration policies so far. – AFP immigration Los Angeles mass deportation Protests raids
