Chinese and Taiwanese Semiconductor Firms Seek Malaysia for High-End Chip Assembly

Chinese semiconductor design companies are turning to Malaysian firms for the assembly of high-end chips, specifically graphics processing units (GPUs), in order to mitigate risks associated with potential US sanctions on China's chip industry. While the assembly of chips does not violate any US restrictions, Chinese firms are seeking alternative packaging services outside of China due to limited availability and concerns about future export curbs. Malaysia, a major player in the semiconductor supply chain, is viewed as an attractive option for Chinese chip firms due to its perceived good relations with China, affordability, skilled workforce, and advanced equipment. This trend highlights the growing diversification of Chinese chip firms and their interest in expanding their presence in non-Chinese markets.