US AI chip restrictions likely trigger global slowdown

US restriction on artificial intelligence (AI) chip exports may result in a widespread slowdown in the sector, impacting the entire supply chain, according to a report from Malaysia’s RHB Investment Bank.

The report stated that certain companies in Malaysia that manufacture semiconductor equipment and provide support to the largest fabrication plants could experience a decrease in sales due to the imposed restrictions.

The research house also noted that Malaysian engineering support players, especially front-end equipment manufacturers, could experience a decrease in demand.

It was also pointed out that some technology companies in Malaysia may be directly impacted due to their involvement in AI server and switch assembly businesses.

Attribution: Xinhua

Subediting: M. S. Salama