The trade war between China and the United States is escalating, which is of great benefit to the semiconductor industry in Malaysia.

Starting from 2025, the tax on semiconductors exported from China to the United States will double, from the original 25% to 50%. Market analysts believe that this will not have a significant impact on local companies, but instead may benefit from it, so they continue to be bullish on technology stocks.

Research analysts at Industrial Investment Bank point out that since the implementation of tariffs by the United States in 2019, it has had little impact on Malaysian companies, and even can be said to be negligible. In addition, the total value of affected goods is relatively small.

Analysts say that in fact, as the trade war between China and the United States escalates, it is a bullish news for the semiconductor industry in Malaysia, because foreign capital continues to flow in and the overflow effect on local companies is obvious due to supply chain divergence and relocation.

"Increasing tariffs is not surprising, because since the outbreak of the China-US trade war five years ago, there has been a major shift and divergence in the supply chain, making the semiconductor supply chain more resilient in dealing with such adjustments."

Malaysia is in a neutral position.

Analysts say that as the world seeks alternative solutions to mitigate geopolitical risks, the "China +1" strategy has benefited Malaysia because of its strong ecosystem, infrastructure, and abundant talent, which have attracted countries to set up factories here.

In addition, Chinese suppliers serving large multinational companies in the usa have begun to collaborate with Malaysian enterprises to set up factories in Malaysia, in order to continue providing a source of supply for American customers.

Furthermore, by turning to neutral countries such as Malaysia, certain products or materials may also avoid the impact of the usa's increased tariffs.

Not only that, as American companies avoid Chinese suppliers, this also opens the door for Malaysian enterprises, especially in the field of semiconductor testing equipment (ATE) and other niche areas.