Chinese firms look to Malaysia for assembly of high-end chips: sources

A worker inspects semiconductor chips at the chip packaging firm Unisem (M) Berhad plant in Ipoh, Malaysia - Reuters

SINGAPORE: A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, keen to hedge risks in case the US expands sanctions on China's chip industry, sources said.

The companies are asking Malaysian chip packaging firms to assemble a type of chip known as graphics processing units (GPUs), according to three people with knowledge of the discussions.