News & Events

In Malaysia’s Silicon Valley, fortunes flip as virus wrecks trade war gains – Source Reuters Tech News

PENANG, Malaysia (Reuters) – Tech firms at Malaysia’s one-time Silicon Valley of the East, swimming in orders from customers fleeing trade war-hit China, have seen fortunes turn again in the space of just a year as the coronavirus outbreak cuts them off from Chinese suppliers.

FILE PHOTO: A general view of Penang skyline, Malaysia, Sept. 20, 2019. REUTERS/Lim Huey Teng/File Photo

Semiconductor test equipment manufacturer Pentamaster Corp Bhd (PMAS.KL) saw its shares more than double last year as sales surged by about a fifth – the steepest in its 29-year existence – as the firm became a refuge from Sino-U.S. import tariffs.

But then China sent workers home to slow the virus, stifling supplies of parts and material further upstream. Pentamaster called alternative sources in Japan, South Korea, Germany and Italy, only to find the action had left them in the lurch too.

The firm has since lowered its 2020 revenue growth outlook to flat from double digits, while its stock has fallen…

Read More…

Source Reuters Tech News

Source link