Malaysia’s semiconductor industry faces challenges from US-China tensions, AI chip export restrictions, and geopolitical shifts. Minister Tengku Zafrul emphasises the National Semiconductor Strategy’s (NSS) resilience, focusing on R&D, diversification, and strategic partnerships. Economist Samirul Ariff warns Malaysia must pivot quickly to avoid stagnation. Strengthening alliances with Japan, South Korea, and ASEAN is key to maintaining competitiveness in the evolving global semiconductor landscape.