PETALING JAYA: Semiconductor assembly and testing companies in Malaysia won’t be seeing any immediate impact from the United States’ newly announced 25% tariff.
Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said the policy appears to be narrowly targeted at advanced computing chips, such as Nvidia’s H200 and AMD’s MI325X, and includes broad exemptions that limit direct exposure for many Malaysian players.
“High-end chips fabricated in the US, with semiconductor wafers sent to Malaysia for assembly and testing, are likely to be exempted.
“At this point, assembly and testing companies here are not seeing an immediate impact, and their US counterparts are still assessing the situation,” he said when asked to comment on a Reuters report which said the 25% tariff imposed by the United States on certain high-end semiconductors could be followed by other announcements pending negotiations with other countries and companies.
President Donald Trump had previously floated tariffs of up to 100% on chips not made in the United States as part of efforts to strengthen domestic semiconductor manufacturing.
Wong said chips manufactured outside the United States, for example in Taiwan or South Korea, and assembled and tested outside the United States, could be subject to the 25% duty, although exemptions apply if the chips are used for purposes such as US data centres, research and development, or other approved applications.
On the equipment side, Wong said most local companies are not involved in producing high-end semiconductor fabrication tools, limiting their direct exposure.
“However, multinational electronic manufacturing services firms and companies making advanced equipment could be affected if such products are shipped back to the US,” he said.
Despite the limited short-term impact, Wong said the announcement should serve as a wake-up call for Malaysia’s semiconductor ecosystem.
“The focus must be on building long-term resilience. Malaysia cannot rely only on being a strong manufacturing base, we need to become a centre for innovation and high-value semiconductor activities,” he added.
