Semiconductor, E&E Companies Pressured By US Tariff - MSIA

KUALA LUMPUR, May 16 (Bernama) -- Malaysia’s semiconductor and electrical and electronics (E&E) companies will not be able to absorb the United States’ (US) tariff implications or maintain prices for US customers, according to the Malaysia Semiconductor Industry Association (MSIA).

Findings from the MSIA E&E/Semiconductor Quarterly Pulse Survey for the first quarter of 2025 revealed that 74 per cent of the respondents agreed that US policy and tariff will deter investments and weaken Malaysia’s attractiveness, while 65 per cent said they will impact Malaysia’s E&E industry negatively over the next 12 months.

The quarterly ongoing survey, conducted among more than 300 members, assesses the sentiment, trends, challenges, and opportunities within Malaysia's E&E and semiconductor industry.

It is anchored on the implications of US tariffs, trade policies, and international responses, particularly the ongoing investigation under Section 232 of the US Trade Expansion Act of 1962.

In a statement, MSIA president Datuk Seri Wong Siew Hai said frequent tariff changes and export controls have disrupted supply chains, increased costs, and slowed the global economy.

“These disruptions are expected to lower global demand, inevitably impacting Malaysia and other major trading nations.

“MSIA is hopeful that the government will be able to negotiate with the US for more favourable tariff terms, especially in light of Malaysia’s five-decade-long contribution to the rise of US semiconductor giants,” he said.

“MSIA acknowledges and commends constructive government efforts to defend the nation’s interests, and actively engages with relevant ministries and agencies to ensure the industry’s concerns and recommendations are well-represented in negotiations with the US,” it said.

-- BERNAMA