Malaysia’s technology sector turned lower on Tuesday as the US announced an investigation into semiconductor imports set by the Donald Trump administration over tariff-setting.
Bursa Malaysia’s Technology Index, which tracks 49 stocks in the sector, fell 2% by the midday trading break. Inari Amertron Bhd, the sector’s largest firm by market capitalisation, fell nearly 4% while Frontken Corporation Bhd and ViTrox Corporation Bhd both fell about 3%.
Software and information technology companies, meanwhile, appeared unperturbed as MyEG Services Bhd, ITMAX System Bhd and CTOS Digital Bhd remained steady.
Meanwhile, the United States is investigating imported semiconductor and pharmaceutical products under Section 232 of the Trade Expansion Act of 1962 on the grounds that widespread reliance on foreign drug and chip production poses a national security threat.
The investigation, which began on April 1, was launched following the announcement over the weekend of exemptions to punitive retaliatory tariffs on consumer electronics and semiconductor equipment.
Global technology stocks rallied on Monday despite analysts and industry warnings that the Trump administration may target semiconductor imports separately from the tariffs announced on April 2.
