back to top
Wednesday, May 22, 2024

Trending Stories

Related Posts

- Advertisement -

Chinese firms opt for Malaysia to assemble advanced chips

Chinese semiconductor companies increasingly choose Malaysia for GPU assembly, leveraging the country's strategic location and advanced technology to mitigate US-China geopolitical risks.

Several Chinese semiconductor design companies are increasingly turning to Malaysian firms to assemble parts of their high-end chips. This move aims to mitigate potential risks should the US intensify sanctions on 's chip industry. Sources reveal these companies specifically request the assembly of graphics processing units (GPUs) in Malaysia. However, the process only involves assembly, not wafer fabrication, ensuring compliance with US regulations. Some agreements have already been reached, although the names of the companies remain confidential.

Nvidia tailors chips for China market

Chinese firms face challenges in obtaining advanced packaging services as the US tightens controls on high-end GPUs, which are pivotal in artificial intelligence, supercomputing, and military . This packaging is crucial for enhancing chip performance and is gaining prominence in the semiconductor sector. While not yet restricted by US export controls, there is concern that this technology might eventually be targeted. Malaysia, a key player in the semiconductor supply chain, offers a strategic location for Chinese firms looking to diversify their assembly operations outside of China.

Malaysia: A favourable destination

Malaysian companies like Unisem, with significant Chinese ownership, have experienced a surge in business from Chinese clients. John Chia, Chairman of Unisem, highlights that trade sanctions and supply chain issues have led Chinese chip designers to seek alternative supply sources in Malaysia. The country's amicable relations with China, cost-effectiveness, skilled workforce, and advanced technology make it an attractive option for these firms. Chia assures Unisem's operations are legitimate and fully compliant with regulations, with most Malaysian customers being American companies.

Global impact and expansion plans

Malaysia currently holds 13% of the global market share in semiconductor packaging, testing, and assembly, with ambitions to increase this to 15% by 2030. Chinese firms like Xfusion and StarFive are expanding their presence in Malaysia with significant investments in GPU server manufacturing and design centres. The country has also attracted major investments from global players like Germany's Infineon and US-based Intel. Beyond Malaysia, other nations like Vietnam and India are also vying to expand their chip manufacturing services, appealing to companies looking to mitigate geopolitical risks between the US and China.

Tech Edition has partnerships that involve sponsored content. While this financial support helps us with daily operations, it doesn't affect the integrity of our reviews. We remain committed to delivering honest and insightful content to our readers.

Tech Edition is now on Telegram! Join our channel here and catch all the latest tech news!

Nurin Sofia
Nurin Sofia
Nurin Sofia is a news editor at Tech Edition. Her interest is in technology and startups, occasionally crunching news for gaming. Sofia enjoys playing video games, going on bike rides, and gardening when she isn't behind a keyboard.

Featured Content

Dreame X30 Ultra vs X30 Master: Which robot vacuum is better for you?

Compare the Dreame X30 Ultra and X30 Master, featuring the latest cleaning technology. Discover key differences in pricing, features, and dock systems to choose the best robot vacuum-mop for your Singapore home.

Latest Stories

Related Stories