Malaysia Seeks Clarity as Trump’s 100% Chip Tariff Sparks Industry Concern

Malaysia is seeking clarification from the United States after President Donald Trump announced a 100% tariff on semiconductors produced by firms not investing in the U.S. The move has rattled global chip markets, especially impacting countries like Malaysia, a major hub for legacy chip manufacturing.

Trade Minister Datuk Seri Tengku Zafrul Abdul Aziz told Parliament that Malaysia would “fight for Malaysia” to ensure any policy shifts or exemption criteria are clearly communicated and negotiated ahead of implementation.

Chip Tariff

“We want Malaysia’s position as a strategic partner in the semiconductor supply chain to be preserved,” he said.

Analysts warn the new U.S. policy may hit lower-end chip producers in Malaysia hard, potentially opening the door for Chinese competitors to dominate the legacy chip market — a development that could have wider geopolitical and economic implications.

Business News