Chinese firms look to Malaysia for high-end chips assembly

Transcript

00:00 Chinese semiconductor design companies are turning to Malaysian firms to assemble high-end chips,

00:05 specifically graphics processing units, in order to mitigate risks associated with potential US

00:12 sanctions on China's chip industry. The requests for assembly services which do not violate any US

00:19 restrictions have already resulted in some agreed contracts. Chinese firms are seeking advanced chip

00:25 packaging services as advanced packaging can significantly enhance chip performance.

00:30 Malaysia is seen as an attractive option due to its position in the semiconductor supply chain.

00:36 Perceive good relations with China, affordability, experienced workforce, and sophisticated

00:43 equipment. Malaysia accounts for 13% of the global market for semiconductor packaging,

00:49 assembly, and testing and aims to increase that to 15% by 2030. Other countries such as Singapore,

00:56 Vietnam, and India are also looking to expand their chip manufacturing services to attract

01:02 clients seeking to minimize geopolitical risks between the US and China.