Technology Sector Faces Adjustment Pressure Amid Slowing Chip Demand Concerns

March 7, 2026
Sector Analysis
Star Biz

Malaysian technology stocks generally declined on Friday, with the FBM Technology Index falling 0.8%. Concerns over slowing global chip demand, coupled with weaker earnings forecasts from US tech giants, pressured local tech shares.

Malaysia's technology sector faced pressure in Friday's trading session, with the FBM Technology Index declining by 0.8%, primarily due to uncertainties in the global semiconductor industry outlook. Major tech stocks, including Inari Amertron (INARI) and Unisem (M) Bhd (UNISEM), experienced slight declines. Market analysts pointed out that while long-term tech trends remain robust, in the short term, slowing global economic growth and weak consumer electronics demand have led to chip inventory adjustments, impacting local semiconductor manufacturers and assemblers. Investors are closely monitoring earnings reports from US tech giants for signs of industry recovery. The technology sector is expected to remain volatile until clearer signs of recovery emerge.
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