Malaysia remains unperturbed by competition from China and the US in the semiconductor industry, according to the country's minister.

• Malaysia remains unfazed by competition from China and the U.S. as it continues to push into high-end semiconductor manufacturing, according to the country's second finance minister.
• Amir Hamzah Azizan stated during the IMF spring meetings in Washington on Wednesday that the semiconductor industry is currently experiencing an upswing, and Malaysia will benefit from this trend.
• The trade tensions between the U.S. and China seem to be benefiting Malaysia, as companies are shifting their semiconductor operations to the country.

Malaysia remains unfazed by competition from China and the U.S. as it continues to push into high-end semiconductor manufacturing, according to the country's second finance minister.

Amir Hamzah Azizan stated during the IMF spring meetings in Washington on Wednesday that the semiconductor industry is currently experiencing an upswing, and Malaysia will benefit from this trend.

He observed that Malaysia does not view China, its largest trading partner, as a competitor in the industry.

He stated that there is enough growth to go around, so everyone will receive some benefits from it.

Supply chains must remain robust amid geopolitical tensions, as Amir Hamzah explained.

"Our focus is to provide a vibrant and strong supply chain connectivity, ensuring that we ride on it as end users diversify their supply chains."

Competing with U.S.

Malaysia is benefiting from U.S.-China trade tensions as companies are diversifying their semiconductor operations, shifting away from the back end of the chip supply chain production and moving up the value chain.

The Malaysian Investment Development Authority stated in a Feb. 18 report that the country holds 13% of the global market for chip packaging, assembly and testing services. Additionally, the government is intensifying its efforts to develop its semiconductor ecosystem and attract investments.

Malaysia offers a different value proposition as the U.S. increases its investments in chips.

""I believe we won't directly compete with the U.S. in the high-end market, where they excel, and instead focus on other areas," he stated, implying that it's not a significant challenge for us."

The country is concentrating on expanding its value chain to entice new enterprises and maintain its standing in the industry, he stated.

"The minister concluded, stating that it is about economies of scale."