EU backs Malaysia's drive to climb semiconductor value chain via Global Gateway

European Commissioner for International Partnerships Jozef Síkela affirmed that the EU recognises Malaysia's goal to move higher up the semiconductor value chain and will back it through the Global Gateway investment initiative and the forthcoming Malaysia-EU Free Trade Agreement. He described Malaysia as one of the world’s key chip hubs seeking to retain more economic value domestically, which would also give Europe a more diversified and reliable supply base.

The MEUFTA negotiations, now in their fifth round in Brussels with a next round slated for Malaysia, aim to remove trade barriers and boost investment flows. Bilateral trade has surged this year, with Malaysian exports to the EU up over 28 % and EU exports to Malaysia up nearly 12 %. The EU also stressed broader ASEAN cooperation on energy, digital connectivity and sustainable value chains, citing €60 million in provisional grants for regional power-grid projects. Síkela warned that diversified, interconnected electricity systems enhance energy security, drawing on his experience during the 2022 energy crisis in Europe.