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Malaysia's semiconductor exports remain exempt from US tariffs

Malaysia continues to benefit from tariff exemptions on its semiconductor shipments to the United States, according to International Trade and Industry Minister Johari Ghani, providing reassurance to the country's crucial electronics sector.

LSN Malaysia · 13 October 2026

KUALA LUMPUR — Malaysia's vital semiconductor industry has been spared from new US tariff measures, the Ministry of International Trade and Industry confirmed on Monday. Minister Johari Ghani stated that the country continues to enjoy exemptions on semiconductor exports destined for the American market, shielding a sector that forms a cornerstone of Malaysia's manufacturing base.

The exemption comes amid broader trade tensions between the United States and several regional trading partners. Semiconductors rank among Malaysia's top export commodities, with the industry employing tens of thousands of workers across manufacturing, design, and support services.

The minister's assurance is expected to ease concerns among semiconductor manufacturers and exporters who have been monitoring potential impacts from US trade policy shifts. Malaysia has established itself as a significant player in the global semiconductor supply chain, producing components for major technology companies worldwide.

The exemption reflects Malaysia's strategic importance in global electronics manufacturing and comes at a time when supply chain diversification remains a priority for major technology firms seeking alternatives to concentration in single markets.