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‘Neutral’ Malaysia is best bet for chipmakers seeking haven from US-China tech war, Anwar says

  • As a ‘non-aligned’ location, Malaysia can help build a more secure and resilient global semiconductor supply chain, Anwar says
  • Southeast Asian countries are vying fiercely for chip investment as tech giants seek to manage the fallout of US sanctions against China

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Malaysia’s Prime Minister Anwar Ibrahim speaking during the KL20 Tech Forum in Kuala Lumpur. Photo: Bloomberg
Prime Minister Anwar Ibrahim on Tuesday said Malaysia was the global semiconductor industry’s best bet for a “neutral and non-aligned location” to do business, as he pitched his country to top chipmakers seeking a haven from the US-China tech war over Washington’s sanctions.
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Across Southeast Asia, competition is fierce for semiconductor investments, as tech firms scan the world for sites to make their crucial chips. Concerns are escalating over a US-China tech war, which has disrupted supply chains of everything from smartphones and computers to electric vehicles.

Anwar said Malaysia aimed to secure at least 500 billion ringgit (US$106 billion) in fresh semiconductor investments under a new National Semiconductor Strategy (NSS).

“I offer our nation as the most neutral and non-aligned location for semiconductor production, to help build a more secure and resilient global semiconductor supply chain,” Anwar said in his keynote speech at Semicon Southeast Asia 2024 in Kuala Lumpur, which drew dozens of firms from Asia, Europe and the Americas.

“Geopolitical dynamics aside, a robust multinational semiconductor production remains vital for humankind’s survival, particularly as we are running out of time in our climate action and risk mitigation.”

A worker inspects semiconductor chips at the chip packaging firm Unisem (M) Berhad plant in Ipoh. Photo: Reuters
A worker inspects semiconductor chips at the chip packaging firm Unisem (M) Berhad plant in Ipoh. Photo: Reuters

Malaysia is a key player in the global semiconductor industry, supplying 13 per cent of total demand in the assembly, packaging and testing sector, according to government data.

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