Malaysia is a critical hub for semiconductor assembly, test, and packaging — home to Intel, Infineon, Texas Instruments, STMicroelectronics, and many other global IC makers. Malaysia-assembled components face only the 10% Section 122 surcharge, versus up to 60% for China-origin semiconductor ICs.
On a $100,000 BOM, China incurs $60,000 in duty vs $10,000 from Malaysia — a difference of $50,000 per order.
| Source | Duty Rate | Duty Amount | Landed Cost |
|---|---|---|---|
| China | 60% | $60,000 | $160,000 |
| Malaysia | 10% | $10,000 | $110,000 |
| Savings from Malaysia | $50,000 | $50,000 | |
* Estimate for electronics HTS chapters 8541–8542. Actual duty depends on specific HTS code, MPF, HMF, and customs value.Calculate exact duty →
Malaysia has been a semiconductor assembly and test hub since the 1970s when Intel first established its Penang facility. The country offers a skilled English-speaking workforce, favorable tax incentives (MSC status, Pioneer Status), political stability, and proximity to other Asian supply chain nodes.
It depends on the specific variant. STMicroelectronics assembles some STM32 products in Malaysia (Muar) and some in China (Shenzhen). The same MPN may come with either COO depending on production batch. Always request COO documentation from your distributor. Use TariffTracker to calculate duty for each origin.
No. Section 301 tariffs are China-specific, imposed under the Trade Act of 1974 for China's trade practices. Malaysian-origin goods are not subject to Section 301. Malaysia faces only the 10% Section 122 global surcharge that applies to all trading partners.
Malaysia has been politically stable and trade-friendly for decades. Its Penang and Kulim semiconductor clusters are unlikely to relocate. The main risk is natural disasters (the Penang region is low-risk for major hazards) and business-cycle demand fluctuations. It's considered a reliable, low-geopolitical-risk sourcing location.
Enter any HTS code and country of origin. See the full duty stack, MPF, and landed cost instantly.
Open Calculator →