(Aug 28): Malaysia’s chip industry chief raised his forecast for the nation’s electrical and electronics (E&E) exports this year to more than RM900 billion (US$223 billion), as demand fuelled by the global artificial-intelligence (AI) boom surpassed earlier expectations.

As recently as the second quarter, Malaysia Semiconductor Industry Association president Wong Siew Hai had forecast shipments of more than RM800 billion. E&E exports rose to RM711 billion in 2025 from RM601 billion the previous year.

Malaysia’s tech exports jumped 44% in the first seven months of 2026 to about RM564 billion, accounting for roughly 48% of the country’s total shipments abroad, according to Wong. Semiconductors make up almost three-quarters of the category.

“With this momentum, it’ll probably breach RM900 billion,” this year, Wong, who spent 27 years at Intel Corp, said in an interview on Friday. “Everybody is building AI infrastructure at every level.”

The AI boom and a shift in global supply chains are driving Malaysia’s electronics exports higher. Strong demand for semiconductors, servers and data-centre equipment has boosted orders for the country’s chip industry, while companies looking to reduce their reliance on China have expanded production in Malaysia. That investment is adding capacity in assembly, testing and packaging and pushing the industry into more advanced parts of the semiconductor supply chain.

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