Trump tariff threats cast shadow over Penang’s booming semiconductor industry

By The Straits Times | Created at 2025-03-15 08:05:52 | Updated at 2025-03-15 11:57:19 4 hours ago
In Malaysia's semi-conductor value chain, chipmakers are able to use equipment supplied by neighbouring companies, creating a virtuous cycle. 

Malaysia is hoping to move into the advanced "front-end" of the semiconductor business to add resilience to its supply chain in the face of impending US tariffs.ST PHOTO: SHANNON TEOH

Shannon Teoh

GEORGE TOWN, Penang - US President Donald Trump’s first term in the White House was seen as a black swan event with adverse repercussions for much of the global economy, but Malaysia’s semiconductor industry emerged relatively unscathed, and even saw orders grow at an unprecedented rate.

However, the return of the brash billionaire to the Oval Office in January for a second term has set off alarm bells in Penang – where over half of Malaysia’s chip firms are located – amid fears of wider and deeper trade sanctions being issued by Washington.

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