US tariffs waiver to help Malaysian semiconductor firms mitigate impact of chip production costs

The exemption of Malaysia's semiconductors from US sweeping tariffs will help mitigate any direct impact on chip production costs but uncertainties persist, according to Public Investment Bank Bhd (PublicInvest).

The firm said uncertainties persist around potential cost increases for non-semiconductor systems and components sourced from other regional countries. 

"Following this, we expect retaliatory measures from China and the European Union while some countries might plan to hold negotiations with the US.

"Though the tariff is only imposed on the US importers, we believe the additional costs derived from the reciprocal tariffs would be absorbed by all players in the supply chain including the end customers," it said in a note.

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