Malaysia’s Semiconductor Firms Anticipate Future US Tariffs Despite Current Exemption
Malaysia’s semiconductor industry has avoided immediate US tariffs but faces future uncertainties. President Wong cautions that trade actions may still target semiconductors, affecting both local and American firms. Current tariffs are subject to negotiation, and industry leaders remain on alert as they await further developments.
Malaysia’s semiconductor companies are cautiously optimistic despite recently dodging US tariffs. However, Datuk Wong Siew Hai, president of the Malaysia Semiconductor Industry Association, warns that the sector isn’t clear yet. He emphasizes that future trade actions targeting semiconductors remain possible.
US President Donald Trump has imposed a general 24% tariff on goods imported from Malaysia effective April 9, exempting semiconductors. Despite this exemption, Wong suggests that American firms in Malaysia may not be shielded from potential tariffs.
Currently, electrical and electronic products represent roughly 40% of Malaysia’s exports, with major companies like Intel and Infineon Technologies operating significant facilities in the country. Wong notes that semiconductors could still indirectly face repercussions as they comprise components in goods subject to tariffs, such as computers and industrial machinery.
Wong highlighted that even if products are exempt at the semiconductor level, they can still be subject to tariffs when shipped to the US as part of finished equipment. Currently, the Malaysian semiconductor industry is in a wait-and-see mode due to the unpredictable nature of US trade policies, especially under the Trump administration.
The tariffs are not definitive, and discussions regarding potential negotiations are underway between the Malaysian government and the US, as stated by the Ministry of Investment, Trade & Industry.
The Malaysian semiconductor industry remains vigilant amidst ongoing uncertainties regarding US tariffs despite the current exemption. With potential future actions by the US government and the implications for both Malaysian and American firms, the landscape appears complex. The sector’s response will depend on upcoming negotiations and the evolving trade policy environment.
Original Source: theedgemalaysia.com
