Semiconductor sector urged to brace for new wave of US tariffs

Tariff Wars News

Semiconductor sector urged to brace for new wave of US tariffs
MalaysiaSemiconductor IndustryUnited States
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SAN FRANCISCO (Reuters) - Intel's new CEO, Lip-Bu Tan, is streamlining the semiconductor giant's leadership team, with important chip groups reporting directly to him, according to a memo from Tan seen by Reuters.

Economic uncertainty: Trump recently announced tariffs on importing semiconductors, with flexibility on some companies in the sector. — CHAN BOON KAI/The Star

Wong pointed out that even before tariff tensions escalated, Malaysia had begun benefiting from the China Plus One strategy where companies diversify their manufacturing from China. On April 2, Trump announced reciprocal tariffs for countries around the world, including Malaysia, which was hit with a 24% tariff.The Trump administration, however, exempted smartphones, computers and other electronics from its reciprocal tariffs.

“Accelerating value creation within the supply chain is key. That’s how we stay competitive – by going higher in value, not just bigger in volume,” Wong added. “It is imperative that the Malaysian government is flexible on removing barriers to trade across the board to avoid targeted tariffs on Malaysia’s semiconductor companies,” said Williams.

Shafiq Kadir, an equity analyst at CGS International, said the impact of the tariffs on semiconductors would be minimal, as re-shoring such an extensive back-end process to the United States is a tall order.

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Malaysia Semiconductor Industry United States Tariffs Donald Trump China Plus One Strategy Global Supply Chain Reciprocal Tariffs Value Creation Foreign Direct Investments

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