Technology Sector Faces Pressure: Local Tech Index Drops 1.1% Following US Chip Stock Correction

January 20, 2026
Sector Analysis
Star Biz

The Malaysian Technology Index fell 1.1% following an overnight correction in the Nasdaq and Philadelphia Semiconductor Index. Local semiconductor-related companies like Inari Amertron and MPI recorded declines.

The Malaysian technology sector was under pressure today, with the Technology Index dropping 1.1%, reflecting profit-taking in US tech giants, particularly chip stocks. Inari Amertron (INARI) fell 2.5% to RM3.20, and Malaysian Pacific Industries (MPI) dropped 1.8% to RM29.50. Investors expressed caution regarding the pace of the global semiconductor cycle recovery, although the long-term demand outlook remains optimistic. Analysts suggest the sector might experience short-term volatility but anticipate a strong rebound in the second half of the year as 5G and AI-related spending increases throughout 2026. Local tech firms are navigating inventory adjustments and slower order flows.
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