US firms in Malaysia may escape semiconductor chip tariff, says Tengku Zafrul
Investment, trade and industry minister Tengku Zafrul Aziz is hopeful that some semiconductor manufacturers in Malaysia may be exempted from the 100% tariff the US has imposed on the import of semiconductor chips.
Trump, who announced the tariff yesterday, said that it would not apply to companies that were already producing semiconductor chips in the US or had plans to do so.
Malaysia is the world’s sixth-largest semiconductor exporter, and Tengku Zafrul said about 65% of Malaysia’s semiconductor exports to the US come from American companies operating in Malaysia.
“Of course, one of the things Trump mentioned is that companies announcing new investments or moving parts of their business back to the US might be exempt from the tariffs,” he said during an event at a hotel here.
“So, when it comes to that 65% of exports to the US which come from US companies in Malaysia — we’re not sure yet (but) some of them might be excluded.
He added that his ministry is working closely with Bank Negara Malaysia to assess the full impact of the 100% tariff and its effect on various supply chains.
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