By: Monu Kumar
Malaysian trade minister, Tengku Zafrul Aziz, is actively discussing with chip companies based in Malaysia whether they can absorb the impact of potential U.S. tariffs on semiconductors. This move comes in because Malaysia is actively looking to hedge against risks to its economy, which is majorly, export-driven.
It may be noted that Malaysia is home to a large semiconductor industry. One of the top exporters of chips to the United States. with top U.S. multinationals such as Intel and GlobalFoundries.
Earlier, U.S. President Donald Trump had said in February that he intended to impose tariffs on semiconductors starting at "25% or higher".
Trade Minister said in a statement that Malaysia would need to see the magnitude and quantum of the tariffs. He said the stakeholders and the companies, are already on discussion board whether the tariffs will be absorbed by the consumers.