Malaysia's Semiconductor Exports Projected to Surpass $197 Billion This Year

Malaysia's semiconductor industry association announced on Tuesday that the country's electrical and electronics exports are projected to exceed 800 billion ringgit (approximately $197 billion) in 2026. This growth is attributed to sustained semiconductor demand and robust production performance, with semiconductors expected to constitute about 65% of the total export value.

The association's president, Datuk Serri Wong Siew Hai, stated in an interview that the growth momentum is not slowing down and is set to continue, potentially setting a new record for export value this year. Malaysia's electrical and electronics exports reached 601 billion ringgit in 2024 and increased to 711 billion ringgit in 2025.

Despite facing multiple challenges, including geopolitical tensions, tariff pressures, and a strengthening ringgit, Malaysian chip companies have reportedly "performed well so far." Wong described the current period as a "once-in-a-generation" development opportunity for Malaysia. The country is positioning itself as an ideal location to serve both the U.S. and Chinese markets while striving to move up the semiconductor supply chain.

In a recent effort to attract Japanese semiconductor investment and address gaps in its supply chain, Malaysian Prime Minister Anwar Ibrahim visited Japan. Concurrently, the Malaysian government is actively implementing a national semiconductor strategy. This plan aims to attract total investments of 500 billion ringgit, cultivate leading local design and packaging companies, and train 60,000 high-level engineers by 2030.

On the demand side, growth in artificial intelligence, electric vehicles, and the global digital transformation continues to drive chip demand. As the world's sixth-largest chip exporter, with nearly a 13% share of the global packaging and testing market, Malaysia is leveraging its neutral foreign policy, stable investment climate, and mature industrial base to secure a favorable position in the ongoing restructuring of the global semiconductor supply chain.

Analysts note that despite external uncertainties, Malaysia's continued investment in areas such as advanced packaging, chip design, and IP development is laying the groundwork for an industrial upgrade, shifting its focus from scale to value.