The semiconductor industry has become a driving force behind Malaysia’s economic growth, contributing an estimated 25% to the country’s gross domestic product (GDP). However, 2025 is expected to be a volatile year, especially for the semiconductor sector, due to escalating US-China trade tensions and the incoming deregulation policies under American President Donald Trump. So, what is the outlook for local semiconductor players, and how should they navigate the expected turbulent times? Andrew Chan, Director of the Malaysia Semiconductor Industry Association (MSIA), tells us.

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