Airbus Signs Cloud Deal With Scaleway to Power Secure AI and Defense Applications 
NTSB Leads Investigation Into Ryanair Boeing 737 Engine Failure Over Greece 
Nvidia Partners With Fanuc and Yaskawa to Accelerate AI Robotics in Japan 
Mikron H1 2026 Sales Fall 5.9% as Automation Weakness Weighs on Profit 
Hyundai Takes Full Control of Boston Dynamics to Accelerate Humanoid Robot and AI Strategy 
DeepSeek Eyes $74 Billion Valuation Ahead of Planned China IPO 
xAI Sues Man for Allegedly Using Grok to Generate AI Child Abuse Deepfakes 
Uber to Acquire Delivery Hero in $14.8 Billion Deal to Expand Global Food Delivery Business 
Netflix Stock Drops After Weak Q3 Outlook Overshadows Mixed Q2 Earnings 
Trump Criticizes ABC, NBC and CNN for Limiting Coverage of Election Speech 
Jamie Dimon Warns Anthropic's Mythos AI Poses National Security Risks 
SpaceX Eyes Pentagon AI Deal as Cloud Pricing Strategy Pressures CoreWeave 
Volvo Cars Q2 Profit Falls as Automaker Bets on EX60 EV to Drive Recovery 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Sodexo Unveils Shift & Grow 2030 Strategy, Targets Over 5% Revenue Growth by Fiscal 2030 
United Airlines Beats Q2 Earnings, Raises 2026 Profit Outlook Despite Higher Fuel Costs 
Apple Intelligence China Approval Lifts Alibaba and Baidu Shares 
Chinese chipmakers reportedly turn to Malaysian companies for chip assembly deals as fears of U.S. sanctions intensify. A growing number of China-based chip design firms are reportedly tapping into companies in Malaysia to handle the assembling process of their high-end chips.
The chip firms are said to be taking this step to limit risks in case the United States widens its sanctions on China's semiconductor industry. The companies are asking chip packaging enterprises to assemble graphics processing units (GPUs) for them to complete their production processes.
Assembly Deal Requests
This information was shared by three individuals who are familiar with the discussions regarding the matter. As per Reuters, the deal requests only comprise assembly, a production process that does not breach any U.S. restrictions.
The Chinese firms are not requesting other jobs such as fabrication of the chip wafers. They reiterated that they only need chip assembly for GPUs. In a positive development, it was said that some companies have successfully secured contracts already. However, sources declined to identify the companies involved since the agreements are confidential.
The U.S. Restrictions
WION News reported that the increased restrictions by U.S. officials are limiting China's access to advanced GPUs, which are important components in artificial intelligence and military applications. The sanctions have left minor Chinese chip design firms fighting to obtain enough supply of advanced packaging services locally. This made the firms turn to Malaysian firms for these essential services.
Meanwhile, it was mentioned that Unisem, which is mainly owned by China-based Huatian Technology firm, and other chip packaging firms in Malaysia have received more business proposals and inquiries from Chinese customers. Despite possible concerns over the reactions, it was said that Unisem's business dealings are not affected because they are fully legitimate and compliant with the operation requirements.
Photo by: Vishnu Mohanan/Unsplash
