US, Malaysia Agree To Sign Semiconductor Supply Chain Memorandum In 2022

Amid the ongoing semiconductors crisis, Malaysia and the United States will create a memorandum on cooperation in the development of semiconductor supply chains, which is to be signed in 2022, the trade ministers of both countries said on Thursday

KUALA LUMPUR (UrduPoint News / Sputnik - 18th November, 2021) Amid the ongoing semiconductors crisis, Malaysia and the United States will create a memorandum on cooperation in the development of semiconductor supply chains, which is to be signed in 2022, the trade ministers of both countries said on Thursday.

"Given Malaysia's critical role in global supply chains for semiconductors, electronics, health products, and other key goods, this announcement is an important first step in collaborating on current and long-term supply chain challenges for both our nations and the global economy," Malaysia's Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Ali and US Secretary of Commerce Gina M. Raimondo said in a joint statement, as quoted by Malaysian National news Agency Bernama.

Other than the supply chain of semiconductors, bilateral cooperation is also to embrace production of climate change mitigating goods, electronics, digital economy, and medical equipment, according to the statement.

"We believe a strong US-Malaysia partnership would help both our countries achieve the maximum potential for robust mutual growth," the ministers said.

The agreement was achieved during a working visit of Raimondo to Malaysia. During her trip to the Asia-Pacific region, the US secretary also visited Japan and Singapore.

The agreement was achieved during a working visit of Raimondo to Malaysia. During her trip to the Asia-Pacific region, the US secretary also visited Japan and Singapore.

As Raimondo stated on Wednesday, her visit to Malaysia is part of the plan for the development of a strong foundation of the Indo-Pacific economic framework proposed by US President Joe Biden.

The ongoing semiconductor crisis is a side-effect of the COVID-19 pandemic - a significant shortage of semiconductors and queues among manufacturers of electronic goods. Various countries' lockdowns and the shift to remote work, coupled with increased demand for electronics among consumers, greatly affected production capacities. Given that Malaysia is among the top-ten manufacturers of semiconductors in the world, bilateral cooperation between the US and Malaysia in this sector is regarded as critical.