Semiconductor sector of Malaysia to experience a slowdown in 2023

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Semiconductor sector of Malaysia to experience a slowdown in 2023
Semiconductor sector of Malaysia to experience a slowdown in 2023

Because the worldwide semiconductor forecast is already at negative 4%, the industry is expected to record negative growth rate in 2023

Due to geopolitical uncertainties, high inflation and global economic recession, the semiconductor sector of Malaysia is likely to experience a slowdown in 2023.

Companies producing consumer products such as the iPhone and personal computers are seeing lower revenue due to reduced consumer demand, said Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai.

“The uncertainty due to conflicts such as the Ukraine-Russia war is also impacting sales for consumers products, thus resulting in lower consumer demand in the semiconductor industry.”

“The electronic and electrical (E&E) sector’s growth in 2021 was 18%. I expect the growth in 2022 to be 19% year-on-year,” he told the reporters at an appreciation luncheon with former Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed here on Monday.

Wong also noted that because the worldwide semiconductor forecast is already at negative 4%, the industry is expected to record negative growth rate in 2023.

However, there are certain areas where the companies are unaffected and still reasonably strong, he said.

“Some companies, like those in the automotive and networking sectors, benefited because some of the products were moved from China to Malaysia.”

“In 2023, most companies are on an austerity drive, affecting their competitiveness,” he added.

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