Technology Sector Faces Pressure Amid Global Chip Demand Concerns

February 24, 2026
Sector Analysis
Star Biz

Malaysian technology stocks broadly declined today, with the FBM Technology Index falling 1.5%, as market concerns over a potential slowdown in global chip demand impacted local semiconductor and Electronic Manufacturing Services (EMS) companies.

KUALA LUMPUR, Feb 24 – Malaysian technology stocks showed weakness today, with the FBM Technology Index declining 1.5% to close at 65.80 points. Key decliners included Vitrox Corporation Bhd, which fell 2.5% to RM6.25, and Inari Amertron Bhd, which dropped 1.8% to RM3.28. Market sentiment was influenced by recent earnings reports from US and European tech companies, some of which lowered their full-year revenue guidance, sparking concerns about a potential slowdown in global chip and electronics demand. Despite the ongoing AI boom, analysts warned that traditional semiconductor and consumer electronics segments might face challenges. Local Electronic Manufacturing Services (EMS) companies could also be impacted by reduced orders. Investors are closely monitoring the capital expenditure plans of international tech giants to assess the impact on the local supply chain.
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