The Chip War: A Wide Window of Opportunity for Malaysia

SEMICONDUCTOR PRODUCTION HAS emerged as the latest geopolitical battleground, replacing oil as the 21st century’s strategic resource. This new era of competition involves both major global powers, i.e. the US and China, and smaller nations such as Taiwan and South Korea.

The escalating geopolitical tensions between the US and China have prompted companies to adopt de-risking and reshoring strategies, particularly for supply chains involving these countries.

As a result, countries worldwide are strengthening their semiconductor policies to capitalise on the opportunities presented by this diversification in the supply chain. These include the UK, Japan, Vietnam, Taiwan, South Korea and Malaysia, which are increasing investments in domestic semiconductor production, research and development, talent development, and supporting infrastructure.