Chinese Companies Turn to Malaysia for Assembly of High-End Chips
Chinese Semiconductor Firms Explore Malaysian Options
A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, sources said. This move is aimed at hedging risks in case of potential U.S. sanctions on China’s chip industry.
Malaysian Firms Assemble GPUs for Chinese Companies
Chinese companies are seeking Malaysian chip packaging firms to assemble graphics processing units (GPUs) as a way to secure advanced packaging services outside of China, in the wake of increasing U.S. export restrictions.
Malaysia Seen as a Strategic Hub for Semiconductor Supply Chain
Malaysia, a major hub in the semiconductor supply chain, is deemed well placed to grab further business as Chinese chip firms diversify outside of China for assembling needs.
Chinese Companies Expand Operations in Malaysia
Several Chinese chip firms, including Xfusion and StarFive, have announced plans to expand their operations in Malaysia, with the country positioning itself as an attractive option due to its perceived good terms with China, affordability, experienced workforce, and sophisticated equipment.
Global Semiconductor Packaging Market
Malaysia currently accounts for 13% of the global market for semiconductor packaging, assembly, and testing, and is aiming to boost that to 15% by 2030, further solidifying its position in the global semiconductor arena.
International Expansion Beyond China
While Malaysian companies continue to attract Chinese clients, other countries such as Vietnam and India are also seeking to expand further into chip manufacturing services in a bid to minimize U.S.-Sino geopolitical risks and cater to a wider international market.
By Fanny Potkin and Yantoultra Ngui
A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, sources said. This move is aimed at hedging risks in case of potential U.S. sanctions on China’s chip industry.
Chinese companies are seeking Malaysian chip packaging firms to assemble graphics processing units (GPUs) as a way to secure advanced packaging services outside of China, in the wake of increasing U.S. export restrictions.
Malaysia, a major hub in the semiconductor supply chain, is deemed well placed to grab further business as Chinese chip firms diversify outside of China for assembling needs.
Several Chinese chip firms, including Xfusion and StarFive, have announced plans to expand their operations in Malaysia, with the country positioning itself as an attractive option due to its perceived good terms with China, affordability, experienced workforce, and sophisticated equipment.
Malaysia currently accounts for 13% of the global market for semiconductor packaging, assembly, and testing, and is aiming to boost that to 15% by 2030, further solidifying its position in the global semiconductor arena.
While Malaysian companies continue to attract Chinese clients, other countries such as Vietnam and India are also seeking to expand further into chip manufacturing services in a bid to minimize U.S.-Sino geopolitical risks and cater to a wider international market.
($1 = 0.9272 euros)
