Malaysia welcomes US firms, not sanctions, amid chips push. ‘We have an edge’: Anwar

Let the US impose all the unilateral sanctions it wants in its tech war with China, ‘we are free to do what we like’, Malaysia’s PM says

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Malaysia’s Prime Minister Anwar Ibrahim speaks to the South China Morning Post in an exclusive interview at his office in Putrajaya earlier this month. Photo: Hadi Azmi

Published: 9:00am, 16 Jun 2024

Malaysia will not abide by US tech sanctions on China if it involves companies that do not come under Washington’s jurisdiction, Prime Minister Anwar Ibrahim says, as his country leverages its reputation as a global semiconductor hub to draw fresh investments driven by the technology war between the two superpowers.

Global semiconductor firms with a presence in China have been shopping around Southeast Asia for sites to expand their operations amid increasingly strict US sanctions designed to crimp the supply of top-line chips.

Washington claims these components pose a national security risk if used by China to build competing technology.

The shift has benefited Malaysia, which has received billions in investments from US firms. Intel in 2021 announced a US$7 billion plan to expand its advanced packaging facility in Penang state, while graphics card giant Nvidia has made a US$4.3 billion injection to develop its artificial intelligence capabilities in the country.

Anwar called the United States an important investment partner and export destination for chips made in Malaysia, but stressed that his administration could not legitimise unilateral sanctions that would compromise his country’s independence.

“The Americans can impose [sanctions] if they [involve] American companies. It’s fair. But they can’t impose everything on us,” the prime minister said in an exclusive interview with the Post at his office on June 6.