Chinese firms look to Malaysia for assembly of high-end chips, sources say
- The companies are asking Malaysian chip packaging firms to assemble graphics processing units, according to three sources
- Malaysia’s Unisem, majority owned by China’s Huatian Technology, has seen increased business and inquiries from Chinese clients
A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, keen to hedge risks in case the US expands sanctions on China’s chip industry, sources said.
The companies are asking Malaysian chip packaging firms to assemble a type of chip known as graphics processing units (GPUs), according to three people with knowledge of the discussions.
The requests only encompass assembly – which does not contravene any US restrictions – and not fabrication of the chip wafers, they said. Some contracts have already been agreed, two of the people added.
The people declined to disclose the names of the companies involved or to be identified, citing confidentiality agreements.
Seeking to limit China’s access to high-end GPUs that could fuel artificial intelligence (AI) breakthroughs or power supercomputers and military applications, Washington has increasingly placed restrictions on their sales as well as on sophisticated chip-making equipment.