Back in June 2024, business media was prepping the market and public with optimism on the back of stellar performance of the Malaysian semiconductor industry. Maybank's blog report started with the opening line:
Amidst persistent geo-political tensions, Malaysia's semiconductor industry stands as a beacon of growth, poised to seize a substantial share of the global market, projected to reach a staggering USD$588 billion with a 13% growth trajectory this year.
A lecturer and Senior Manager for InvestPerak was all praises for the National Semiconductor Strategy announced by Dato Seri Anwar Ibrahim at an event that month.
However, off-late tech stocks have been taken a beating in the market on Wall Street and Bursa Malaysia since the Yen carry trade driven sell-off early in the month. For one, the incumbent darling semiconductor stocks, Intel having been on a reversal trend to the other rising semiconductor stocks.
The new darling, Nvidia have taken a tumble due to some anti-trust issues, a usual front for corporate battle in the US.
In addition, both Donald Trump and Kamala Harris are campaigning to revive manufacturing sector in the US to compliment the sanction strategy imposed on China. The globalisation promoted by Clinton and Obama doing a reverse due to geopolitics.
This could have an impact on Malaysia and the layoff by Intel Penang, though an Intel problem, is seen by certain business and stock investor as prequel to a pullout.
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