Malaysia poised to gain from AI chip upcycle


KUALA LUMPUR: Malaysia is well-positioned to benefit from the global artificial intelligence (AI)-driven semiconductor upcycle through advanced packaging, AI infrastructure, semiconductor equipment demand and ongoing supply-chain diversification, said Apex Securities Bhd.

In a note today, the research house said this was already evident in the country’s strong growth in electrical and electronics (E&E) exports.

It said, E&E exports rose 39.5 per cent year-on-year in January 2026, supported by "rising semiconductor investments under the National Semiconductor Strategy and favourable exposure across our coverage, including Frontken, Mi Technovation, ViTrox, EG Industries, Inari, QES Group and Wentel.”

Apex Securities said Malaysia currently handles an estimated 13 per cent of global semiconductor assembly, testing and packaging activity.

"The National Semiconductor Strategy has attracted more than RM63 billion in approved semiconductor-related investments, with the aim of doubling Malaysia’s share of the global semiconductor market from about seven per cent to 14 per cent by 2029,” it said.

The research house maintained its "overweight” call on the Malaysian technology sector.

"However, following the sector’s strong re-rating, we believe investors should become increasingly selective.

"The remaining upside is likely to be concentrated in companies with clear earnings catalysts, robust order visibility and proven execution, rather than being broadly available across the sector,” it said. - Bernama 

 

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

US job growth likely cooled in June after recent string of big gains
Signature Alliance declares 1 sen interim dividend
Reservoir Link unit appointed PETRONAS panel contractor for CCUS assessment
Duopharma bags RM225mil MoH insulin contracts, backed by Biocon's Johor facility
FBM KLCI edges higher at midday on banking gains
Malaysia’s position and influence as trading nation a trademark of economic diplomacy
More than RM500mil micro-financing approved during May 15 to June 26
KKR-backed Musinsa plans Asia store push ahead of IPO
Emerging Asia bonds draw global funds despite Fed hike fears
SK Hynix to build US$51bil NAND memory chip factory by 2029

Others Also Read