Lockheed Martin Unveils Lower-Cost Patriot ACE Interceptor to Meet Rising Air Defense Demand 
KKR, AEW Seek China Property Sales as Commercial Real Estate Slump Deepens 
Morgan Stanley Downgrades Adobe, Workday as AI Transition Raises Growth Concerns 
Chalco Shares Jump as Chinalco Plans Up to $300 Million Stake Increase 
Samsung Electronics America to Cut 739 New Jersey Jobs as Texas Headquarters Move Advances 
Ryanair Warns Summer Airfares May Stay Lower as Quarterly Profit Misses Estimates 
GM Q2 Earnings Beat Estimates as General Motors Raises 2026 Profit Outlook 
Judge Approves Anthropic’s $1.5 Billion AI Copyright Settlement With Authors 
Mikron H1 2026 Sales Fall 5.9% as Automation Weakness Weighs on Profit 
Samsung Biologics Launches $1.81 Billion Bid to Acquire PolyPeptide 
Nvidia Reveals 9.3% Stake in AI Cloud Firm Nebius Following $2 Billion Investment 
Volvo Cars Q2 Profit Falls as Automaker Bets on EX60 EV to Drive Recovery 
ASML Trillion-Dollar Valuation: Can Europe’s AI Chip Giant Reach the Historic Milestone? 
TSMC Sees Multi-Year AI Chip Demand as Arizona Expansion Reaches $265 Billion 
GameStop Raises eBay Stake to 9.8% as Ryan Cohen Pushes $56 Billion Takeover Bid 
South Korea’s Coupang Fine Sparks U.S. Criticism, Raising Concerns Over Bilateral Ties 
Why Maruti Suzuki Is Losing Market Share in India as SUVs and Premium Features Gain Popularity 
Chinese chipmakers reportedly turn to Malaysian companies for chip assembly deals as fears of U.S. sanctions intensify. A growing number of China-based chip design firms are reportedly tapping into companies in Malaysia to handle the assembling process of their high-end chips.
The chip firms are said to be taking this step to limit risks in case the United States widens its sanctions on China's semiconductor industry. The companies are asking chip packaging enterprises to assemble graphics processing units (GPUs) for them to complete their production processes.
Assembly Deal Requests
This information was shared by three individuals who are familiar with the discussions regarding the matter. As per Reuters, the deal requests only comprise assembly, a production process that does not breach any U.S. restrictions.
The Chinese firms are not requesting other jobs such as fabrication of the chip wafers. They reiterated that they only need chip assembly for GPUs. In a positive development, it was said that some companies have successfully secured contracts already. However, sources declined to identify the companies involved since the agreements are confidential.
The U.S. Restrictions
WION News reported that the increased restrictions by U.S. officials are limiting China's access to advanced GPUs, which are important components in artificial intelligence and military applications. The sanctions have left minor Chinese chip design firms fighting to obtain enough supply of advanced packaging services locally. This made the firms turn to Malaysian firms for these essential services.
Meanwhile, it was mentioned that Unisem, which is mainly owned by China-based Huatian Technology firm, and other chip packaging firms in Malaysia have received more business proposals and inquiries from Chinese customers. Despite possible concerns over the reactions, it was said that Unisem's business dealings are not affected because they are fully legitimate and compliant with the operation requirements.
Photo by: Vishnu Mohanan/Unsplash
