KUALA LUMPUR: Malaysia's semiconductor-related exports surged 82.4 per cent year-on-year in the first eight months of 2026, compared with a 22.6 per cent increase in 2025, driven by strong global chip demand.
RHB Research said the performance was in line with the ongoing global technology upcycle, with World Semiconductor Trade Statistics forecasting a 108.1 per cent increase in global semiconductor sales this year.
Robust exports also supported domestic production, reflected in stronger growth in chip-related manufacturing.
"We expect robust global semiconductor demand to continue driving Malaysia's export performance through 2026 and into 2027," it said in a note.
Based on the Organisation for Economic Co-operation and Development's classification framework and United Nations Comtrade data, RHB Research estimated that Malaysia accounted for 6.5 per cent of global semiconductor-related exports.
The country also demonstrated strong specialisation across the semiconductor supply chain, particularly in raw materials, silicon wafers, manufacturing equipment and final products.
Its revealed comparative advantage indices for these segments stood at 2.0, 1.7, 2.1 and 5.0, respectively.
However, Malaysia's raw material exports remained concentrated in solar-grade silicon, with no semiconductor-grade production.
RHB Research said the upcoming OCI-Tokuyama facility in Sarawak could help strengthen the country's upstream semiconductor supply chain.
Meanwhile, manufacturing equipment exports rose 71.1 per cent in the first eight months of 2026, accelerating from 31.1 per cent growth in 2025 as global chipmakers expanded production capacity.
The research firm said continued foreign direct investment from leading multinational equipment manufacturers was supporting growth, particularly in measuring and checking equipment and wafer fabrication equipment.
Downstream products, including integrated circuits (ICs) and storage devices, remained the main growth driver, with exports jumping 84.1 per cent during the period.
Growth was led by memory and storage products amid a global shortage driven by artificial intelligence (AI) demand, alongside stronger exports of IC parts.
RHB Research also highlighted Malaysia's shift towards higher-value advanced packaging, citing Intel's new advanced packaging complex, local start-ups such as FusionAP and the establishment of the Malaysian Advanced Packaging Consortium.
It said rising power requirements from AI data centres could create further opportunities for power management ICs.
On the downside, the research firm cautioned that US protectionist trade policies remained a key risk to Malaysia's semiconductor outlook.
These included potential Section 301 tariffs targeting excess capacity, alongside geopolitical risks affecting global supply chains.
"Malaysia's growing reliance on semiconductor-related exports as a growth driver leaves the country increasingly vulnerable to global trade policy shifts and chip demand shocks," it said.
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