The global AI competition is reshaping supply chains, Malaysia raises its annual electronics and electrical exports forecast to 900 billion ringgit.

According to Golden Ten Data APP, the head of Malaysia's chip industry recently raised the country's forecast for exports of electronic and electrical (E&E) products this year, expecting it to exceed 900 billion ringgit (approximately 223 billion USD). The unexpected surge in demand driven by the global wave of artificial intelligence (AI) is the main reason behind this upward revision.

In the second quarter of this year, Wong Siew Hai, Chairman of the Malaysian Semiconductor Industry Association, had predicted that exports would surpass 800 billion ringgit. Data shows that exports of electronic and electrical products have grown from 601 billion ringgit in 2025 to 711 billion ringgit.

According to Wong, in the first seven months of 2026, Malaysia's technology product exports soared by 44%, reaching about 564 billion ringgit and accounting for nearly 48% of the country’s total exports. Among these, semiconductor products made up nearly three-quarters of this category.

Wong, who worked at Intel (INTC.US) for 27 years, said in an interview on Friday: “Based on the current momentum, it is very likely that this year's export volume will exceed 900 billion ringgit. AI infrastructure is actively being built at all levels.”

The vigorous development of AI and adjustments in the global supply chain are jointly driving Malaysia's electronic and electrical exports to new heights. Strong demand for semiconductors, servers, and data center equipment has brought a large number of orders to the country’s chip industry. At the same time, many companies are continuously expanding their production operations in Malaysia. These investments not only increase Malaysia’s capacity in assembly, testing, and packaging, but also drive its industry toward higher-end links in the semiconductor supply chain.