Reuters revealed how the U.S.-China trade war is proving a boon for Malaysia’s electronics sector, centered in the coastal state of Penang, which was once called the “Silicon Valley of the East.” The war is pushing companies to look for factories outside China to escape retaliatory tariffs. Although Penang is just one of the areas across Asia competing for supply chains seeking a new location and lower tariffs, its two industrial zones have the advantage of a long-established ecosystem of suppliers and customers in one place and cheaper labor than regional rival Singapore. The other factor going for Penang is that many semiconductor and other electronics products from Malaysia do not attract U.S. tariffs, unlike the 25% rate for China.
Reuters reveals how U.S.-China trade war rejuvenates ‘Silicon Valley’ firms in Malaysia
13 October 2019, 12:00 am 1 minute
Type: Reuters Best