US, Malaysia to sign cooperation deal on supply chain improvements
Malaysia's chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, has warned that shortages will last at least two years, even as some easing was expected towards the end of this year. - REUTERS
KUALA LUMPUR: The United States and Malaysia plan to sign a cooperation agreement by early next year towards improving transparency, resilience and security in the semiconductor and manufacturing sector supply chains, the two countries said on Thursday.
It comes as Malaysia seeks to tackle a shortage in semiconductor chips after supplies were disrupted due to curbs imposed to stem a surge in COVID-19 cases this year.
Malaysia's chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, has warned that shortages will last at least two years, even as some easing was expected towards the end of this year.
"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," said a joint statement.
The announcement was made during a visit to Malaysia by U.S. Secretary of Commerce Gina Raimondo, who together with Malaysian International Trade and Industry Minister Mohamed Azmin Ali met with semiconductor industry representatives on Thursday.
Must-Watch Video
Stay updated with our news