Latest news with #MalaysianSemiconductorIndustryAssociation
South China Morning Post
04-04-2025
- Business
- South China Morning Post
Malaysia's electronics sector at risk as experts call out Trump's ‘voodoo' tariffs
Malaysia 's vital electrical and electronics sector faces a looming blow from the latest round of US tariffs, which analysts warn will impose steep costs on finished consumer goods and severely disrupt smaller firms deeply embedded in global supply chains. Advertisement US President Donald Trump 's announcement of broad tariffs against nearly all US trading partners on Wednesday – including a 24 per cent levy on goods from Malaysia – has roiled global markets, with analysts warning of a potential trade war if countries respond with retaliatory measures that could accelerate inflation. Washington's new tariffs include limited exemptions for semiconductors – a crucial Malaysian export – but industry players fear those exemptions will not cover finished electrical and electronic goods, which, along with chips, accounted for 120.2 billion ringgit (US$26.7 billion) worth of US-bound exports in 2024. 'Unless you ship pure semiconductors back to the US, chips that go into products like phones, for example, will fall under the 24 per cent [tariff],' said Wong Siew Hai, president of the Malaysian Semiconductor Industry Association (MSIA), referring to the tariff rate set for Malaysia. 07:05 World leaders react to Trump's new tariff blitz as global trade war escalates World leaders react to Trump's new tariff blitz as global trade war escalates 'It all ends up being captured by a fishnet under the total value [of shipments], and 24 per cent is very significant.'
South China Morning Post
26-03-2025
- Business
- South China Morning Post
Malaysia tightens chip regulations amid US scrutiny over Nvidia diversions to China
Malaysia 's semiconductor industry has called for strict monitoring of chip movements throughout the supply chain, including those extending beyond its borders, as the US pushes for tighter regulations on the suspected diversion of sanctioned high-end chip shipments to China through the Southeast Asian nation. Advertisement Authorities in Singapore and the US are investigating claims that advanced chips from Silicon Valley giant Nvidia were fraudulently moved to China. The chips reportedly came from US$390 million worth of servers sent to Malaysia, potentially violating US sanctions on China 's access to high-end chips for artificial intelligence ( AI ) development. Malaysia's Trade Minister Tengku Zafrul Abdul Aziz said on Sunday that the government planned to tighten regulations to closely track semiconductor shipments, in response to US pressure. A senior industry representative said tightening regulations was a 'must do' if Malaysia hoped to placate US concerns, but added that it had to apply to the entire chain. 'The [production] system is far more complex than just building [servers] in Singapore or Malaysia. The flow can start all the way in other countries,' said Wong Siew Hai, president of the Malaysian Semiconductor Industry Association. Advertisement 'It is not just about building a server. It must cover the whole process flow, from the time you receive the chips to building the server and shipping it out. All of it has to follow the same tight control.'
