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More and more Chinese semiconductor design companies are outsourcing high-end chip assembly to Malaysian companies to mitigate the risk of US sanctions on China’s chip industry.
The companies are asking Malaysian chip packaging companies to assemble graphics processing unit (GPU) chips, stressing that this involves assembly rather than chip manufacturing, to avoid violating U.S. restrictions, sources said.
Analysts noted that small Chinese semiconductor design companies are struggling to access advanced packaging services due to U.S. export restrictions, while Malaysia is expected to attract more business as a semiconductor supply chain hub. This move will help Chinese companies sell their products in both domestic and foreign markets.
Malaysia plans to increase its share of the global semiconductor packaging, assembly and test market from 13 %提高至15% by 2030.
(Source: Reuters Image source: freepik)
