RIO DE JANEIRO: The largest South American country, Brazil, is strategically positioned to support the Malaysian semiconductor industry’s ‘Plus One’ strategy, aimed at enhancing supply chain resiliency. Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, emphasized that this initiative goes beyond precautionary measures.
According to BERNAMA News Agency, Tengku Zafrul stated, “It’s a forward-thinking approach that will help Malaysian semiconductor companies not only de-risk their supply chains but also expand their reach to new markets.” The Minister is currently in Brazil as part of Prime Minister Datuk Seri Anwar Ibrahim’s official visit, highlighting the potential synergies for Malaysian companies looking to expand into Latin America, Central America, and North America.
“In terms of size, Brazil’s semiconductor industry is relatively small, but it is very advanced, especially in integrated circuit (IC) design and some of the tools for integrated circuit design,” he explained.
Malaysia, known for its comprehensive semiconductor ecosystem, ranks as the sixth largest semiconductor exporter globally, with exports exceeding US$85 billion (RM380 billion).
Brazil, on the other hand, has a semiconductor export value of US$1.2 billion as of 2022, with a competitive edge in IC design. Malaysia’s ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, alongside homegrown champions like Carsem and Inari, renowned for their OSAT activities.
Tengku Zafrul highlighted the importance of forging closer ties with Brazil and other regions to strengthen Malaysia’s position as a global semiconductor leader. This collaboration is essential for ensuring the industry’s resilience, diversification, and preparedness for future challenges.
When asked about potential disruptions due to the change of President in the United States, Tengku Zafrul noted that no information had been received yet. However, he emphasized the need for ongoing discussions with companies involved i
n the global supply chain, particularly in strategic sectors like semiconductors.
He acknowledged concerns about possible tariff increases under President-elect Donald Trump, noting that while the geopolitical tension has been beneficial for Malaysia, particularly in the E and E sector, increased tariffs could lead to higher prices and reduced consumption. Despite these uncertainties, the Minister emphasized the importance of remaining prepared and engaging with multinational and local companies to maintain a robust supply chain.