Pegatron Chairman T.H. Tung welcomed the sharp reduction in US tariffs on Indonesian exports to 19%—the lowest among Asian countries to date—as a timely boost for the company's newly ramped-up production facility in Batam. He noted that the cut offers Taiwanese companies with operations in Southeast Asia a stronger foothold in global tech competition

Malaysia's semiconductor industry traces back to the 1970s. In August 1972, Malaysia's first free trade zone, the Bayan Lepas Free Industrial Zone (Bayan Lepas FIZ), was launched in Penang. Within four years of Intel's founding, the company established its first overseas packaging and testing plant there

At a forum hosted by Deloitte Taiwan on July 15, titled "Navigating the US-Vietnam Trade Shift: Strategies for Taiwanese Businesses," experts warned that amid rising geopolitical tensions and global trade realignments, Taiwanese companies can no longer depend on tariff-driven strategies or low-cost production models, as growing uncertainties continue to reshape global supply chains

Malaysia has steadily developed its outsourced semiconductor assembly and testing (OSAT) industry, with Penang — often called the "Silicon Valley of the East" — at its core. A recent DIGITIMES visit to Penang offers a fresh view of the region's legacy OSAT giants and fast-rising newcomers

The Malaysian Ministry of Investment, Trade and Industry (MITI) has announced that exports, transshipments, and transit of US-origin artificial intelligence (AI) chips will now require trade permits from the ministry. Companies and individuals must notify MITI at least 30 days in advance for review, even for goods not explicitly listed on Malaysia's strategic items list. This directive responds to increasing US scrutiny over AI chip smuggling routes across Southeast Asia

Malaysia has imposed new export restrictions on high-end artificial intelligence (AI) chips, including those from Nvidia, to curb potential rerouting to China. Effective immediately, all exports, transshipments, and re-exports of US-origin advanced AI chips require a Strategic Trade Permit, the Ministry of Investment, Trade and Industry (MITI) said on July 14, 2025. The regulation is based on the Strategic Trade Act (STA) 2010

The Trump administration is exploiting uncertainty and escalating tariff threats as its new strategy to force countries to comply with US demands. Starting on August 1, the US will impose a 30% tariff on EU goods (originally 20%), sparking strong retaliation across Europe

China has hit a roadblock in its printed circuit board (PCB) industry on its way to expand to Southeast Asia. Starting on August 1, 2025, the US will impose tariffs of up to 36% on goods from Thailand, which risks seriously impacting Thailand's manufacturing sector and upstream Chinese PCB operations in the country

Malaysia's role as a key node in the global semiconductor supply chain is drawing sharper scrutiny as it deepens industrial ties with China while facing mounting trade and export control pressures from the United States. The latest example is SuperSiC's new facility in Penang, launched by a subsidiary of China's JSG

Malaysia's Penang state, home to about 13% of global semiconductor assembly and testing capacity, is positioning itself to capture more advanced chip manufacturing as artificial intelligence (AI) drives demand for sophisticated packaging technologies