It’s no longer news that Chinese semiconductor firms are hard-pressed by the US sanctions on chip production. For this reason, these firms are turning their attention to Malaysia for the assembling of some of these chips. Details on this hit the internet after sources were able to confirm it from those familiar with the matter.
The reports have it that some Chinese semiconductor firms are now relying on other Malaysian firms for the assembling of chips. This means that the Malaysian chip packaging firms are not ladened with the task of manufacturing these chips. Their job in this agreement is to package or assemble the chips that have already undergone designing and fabrication processes.
Those familiar with this issue also point out that Malaysian chip packaging firms will handle the high-end entries. These will be graphics processing units (GPUs) and they might be put to use on smartphones as well as other technology products. This action will help smaller Chinese semiconductor firms to access packaging services within their region.
By doing this, their businesses will be able to thrive regardless of the relentless sanctions from the US government. These smaller firms will need the service of Malaysian chip packagers because of the level of sophistication required for the process. Due to the lack of access to technology necessary for this process, these firms will need this assistance.
With this cooperation in place, these small Chinese semiconductor firms might see significant growth in the coming months. The same can be said of the Malaysian chip packaging firms that will be part of the collaboration. At this moment, there is not much detail on the firms that’ll be part of this collaboration.