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

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.