ASIATODAY.ID, BEIJING – China’s semiconductor industry is starting to expand into the Southeast Asia region to avoid potential sanctions from the United States (US).
One of China’s semiconductor design companies has collaborated with a company in Malaysia. This collaboration includes the assembly of high-end graphics processing units (GPUs).
This assembly switch aims to avoid increasing restrictions imposed by Washington on China’s access to advanced GPUs, which impact important sectors, such as artificial intelligence (AI), supercomputing and military applications.
Quoted from Gizmochina, Tuesday, December 19 2023, China’s smaller semiconductor design companies face challenges getting advanced packaging services domestically, so they are looking for alternatives.
Malaysia, an important player in the global semiconductor supply chain, has become a destination country for Chinese chip companies.
Unisem, a Malaysian semiconductor company majority owned by China’s Huatian Technology and other Malaysian companies reported increased business and demand from China.
Factors driving China’s interest in Malaysia are positive perceptions of Malaysia-China relations, affordability, a skilled workforce, and access to advanced equipment.
Unisem Director John Chia emphasized that the business transaction was legal, even though it would cause a reaction from the US. This is because Unisem’s customer base in Malaysia mostly comes from the US.
Malaysia currently accounts for 13% of the global market for semiconductor packaging, assembly and testing. The target is to control the share to 15% by 2030.
Chinese chip companies, such as Xfusion and StarFive, are planning to expand in Malaysia, joining the ranks of the world’s largest chip companies. Meanwhile global giants, such as Infineon and Intel, have made billions of dollars worth of chip investments in the country.
In the midst of global semiconductor dynamics that continue to develop, other countries such as Vietnam and India are positioning themselves as alternative chip manufacturers in Asia. The trend reflects an industry shift as Chinese companies seek to assemble chips outside the country, mitigating geopolitical risks and gaining easier access to non-Chinese markets. (AT Network)
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