Kuala lumpur: Malaysia is well positioned to benefit from the global artificial intelligence (AI)-driven semiconductor upcycle through advanced packaging, AI infrastructure, semiconductor equipment demand, and ongoing supply-chain diversification, said Apex Securities Bhd.

According to BERNAMA News Agency, the research house noted that this potential is already evident in the country's strong growth in electrical and electronics (E and E) exports. It was highlighted that E and E exports rose 39.5 per cent year-on-year in January 2026, supported by rising semiconductor investments under the National Semiconductor Strategy and favorable exposure across various companies, including Frontken, Mi Technovation, ViTrox, EG Industries, Inari, QES Group, and Wentel.

Apex Securities further elaborated that Malaysia currently handles an estimated 13 per cent of global semiconductor assembly, testing, and packaging activity. The National Semiconductor Strategy has successfully attracted more than RM63 billion in approved semiconductor-related investments, with the ambitious goal of doubling Malaysia's share of the global semiconductor market from about seven per cent to 14 per cent by 2029.

The research house has maintained its 'overweight' call on the Malaysian technology sector. However, it advised that following the sector's strong re-rating, investors should become increasingly selective. The remaining upside is expected to be concentrated in companies with clear earnings catalysts, robust order visibility, and proven execution, rather than being broadly available across the sector.