Malaysia's semiconductor industry is benefiting from the AI boom, particularly in chip exports and ATP services, but not all companies are seeing equal gains. While firms linked to AI infrastructure experience stronger demand, those tied to traditional consumer electronics face cost pressures due to rising memory chip prices.
This uneven distribution highlights the need for Malaysia to focus on advanced packaging and front-end manufacturing to capture more profitable segments of the semiconductor industry, addressing challenges like talent retention and geopolitical risks.
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