Chinese semiconductor design companies turn to Malaysian firms for chip assembly

A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, keen to hedge risks in case the US expands sanctions on China's chip industry.

The companies are asking Malaysian chip packaging firms to assemble graphics processing units (GPUs), according to sources. The requests only encompass assembly and not fabrication of the chip wafers. Some contracts have already been agreed.

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