Malaysia's semiconductor exports surge 82.4pct in first eight months of 2026
KUALA LUMPUR: Malaysia’s semiconductor-related exports surged 82.4 per cent year-on-year in the first eight months of 2026, compared with a 22.6 per cent increase in 2025, driven by strong global chip demand.
Malaysia's semiconductor-related exports have increased by 82.4 percent year-on-year during the first eight months of 2026, according to RHB Research. This growth is attributed to robust global chip demand. The company predicts that the strong global semiconductor demand will continue to support Malaysia's export performance through 2026 and into 2027.
Malaysia accounts for 6.5 percent of global semiconductor-related exports, with a specialisation in raw materials, silicon wafers, manufacturing equipment, and final products. The country's upstream supply chain could benefit from the upcoming OCI-Tokuyama facility in Sarawak. Manufacturing equipment exports rose by 71.1 percent during the same period, driven by foreign direct investment from multinational equipment manufacturers.
Downstream products, such as integrated circuits and storage devices, experienced an 84.1 percent increase, primarily due to a global shortage driven by artificial intelligence demand. RHB Research also noted Malaysia's shift towards higher-value advanced packaging, with the establishment of Intel's advanced packaging complex and the formation of the Malaysian Advanced Packaging Consortium.
However, the research firm warned that US protectionist trade policies and geopolitical risks pose a significant risk to Malaysia's semiconductor outlook.
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