PETALING JAYA: Malaysian semiconductor companies are unlikely to suffer major disruptions to their operations in a worst-case scenario where the whole semi supply chain is divided between the US and China, according to AllianceDBS Research.

“For Inari Amertron Bhd and Globetronics Technology Bhd (GTB), their main sales contributions are largely driven by the US and South Korean smartphone manufacturers, whose key components are either already supplied by, or substitutes are available from non-Chinese suppliers.

“Likewise, we believe Malaysian Pacific Industries Bhd (MPI) and Unisem (M) Bhd have the flexibility to adjust according to their customers’ needs, as both companies have assembly plants in Malaysia and China. Perhaps, the only debatable issue is how Unisem’s key customers (particularly the US and Europe) will view its Chinese ownership structure (59%-owned by Tianshui Huatian) going forward, even though board control and day-to-day operations are still run by the existing Malaysian management,” the research house noted.

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