TA Research reiterated its “overweight” stance on the semiconductor sector.
PETALING JAYA: The positive momentum of global semiconductor sales, which posted another healthy growth in March, will continue to see strong demand from artificial intelligence, 5G and electric vehicles.
On another front, the plan by the administration of US president Donald Trump to rescind and revise a Biden-era rule that restricts the export of advanced AI chips is positive, said TA Research.
“We view this development positively, as it could provide Malaysia with greater access to advanced technologies.
“This is particularly in key industries such as data centres.
“In addition, the potential relaxation of export controls may attract more foreign investment and partnerships, further strengthening Malaysia’s position in the global semiconductor supply chain,” TA Research said in a report yesterday.
According to the research firm, the ongoing trade tensions between the United States and China could create greater trade diversion opportunities for Malaysia under the China Plus One strategy.
Meanwhile, the government recently announced the eligibility criteria for local companies seeking to participate in the advanced chip design framework under Malaysia’s collaboration with UK-based Arm Holdings plc.
“We view this latest development positively.
“This is because it brings us one step closer to helping local companies move up the value chain in the global semiconductor industry.”
In March, global semiconductor sales reached US$55.9bil, marking the 17th consecutive month of year-on-year (y-o-y) sales recovery.
TA Research added the y-o-y improvement was driven by all regions except Europe.
The Americas led the growth, followed by the Asia-Pacific region, China and Japan.
According to the Semiconductor Industry Association, the global semiconductor materials market revenue increased by 3.8% y-o-y to US$67.5bil in 2024.
The growth was mainly driven by higher demand for advanced materials used in high-performance computing and high-bandwidth memory manufacturing.
TA Research reiterated its “overweight” stance on the semiconductor sector.
It has kept its “buy” calls on Inari Amertron Bhd
, Unisem (M) Bhd, Malaysian Pacific Industries Bhd and Elsoft Research Bhd.
