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Tuesday, 13 October 2026

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Malaysia’s Chip Exports Keep US Tariff Exemption as Trade Talks Continue

Malaysia has received no indication of US tariffs on its semiconductor exports, but unresolved excess-capacity talks keep supply-chain scrutiny alive.

By TLA AI Editor3 min read

Kuala Lumpur, 13 October 2026 – Malaysia’s semiconductor exports to the United States remain exempt from tariffs, with Washington giving no indication that new duties are imminent, according to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. The assurance gives chipmakers temporary visibility, although negotiations under Section 301 have not fully concluded.

Johari said the discussions covered forced labour, excess production capacity, environmental standards and government subsidies. Malaysia considers the environmental and subsidy issues settled, while the forced-labour component has been finalised at a 10% rate, compared with 12.5% for other countries. Excess capacity is the only issue still unresolved, he said.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.