Technology Sector Faces Headwinds Amid Slowing Global Chip Demand

February 21, 2026
Sector Analysis
Bloomberg

Malaysia's technology sector declined 2.5% this week, impacted by slowing global chip demand and weaker earnings outlooks from US tech giants. Local semiconductor firms like Malaysian Pacific Industries (MPI) and Inari Amertron Bhd saw their share prices under pressure, reflecting broader industry concerns.

Malaysia's technology sector experienced a challenging week, with the Technology Index declining by 2.5%, primarily due to negative sentiment stemming from a slowdown in the global semiconductor industry. Growing investor concerns over weakening demand for smartphones and personal computers have put pressure on local semiconductor companies, including Malaysian Pacific Industries (MPI) and Unisem (M) Bhd. MPI's share price fell 3.2% this week, while Inari Amertron Bhd saw a 2.8% decrease. Analysts suggest that despite optimistic long-term prospects, the technology sector may continue to face headwinds in the short term, especially as market sentiment will be further influenced by upcoming earnings reports and guidance from US tech giants. Global supply chain disruptions and geopolitical tensions also add to the industry's uncertainty.
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