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Chinese semiconductor design companies are engaging Malaysian firms to assemble a portion of their high-end chips, aiming to hedge risks in case the US expands sanctions on China's chip industry.
Malaysia currently holds a 13% share of the global market for semiconductor packaging, assembly, and testing, with plans to increase it to 15% by 2030.
Sources reported to Reuters, that Chinese companies are requesting Malaysian chip packaging firms to assemble graphics processing units (GPUs).
These requests focus solely on assembly, which does not violate US restrictions, and do not involve the fabrication of the chip wafers. Some contracts have already been agreed upon.
Malaysia currently holds a 13% share of the global market for semiconductor packaging, assembly, and testing, with plans to increase it to 15% by 2030.
As the US imposes restrictions on high-end GPUs to limit China's access, Chinese semiconductor design firms are finding it challenging to secure advanced packaging services domestically.
