Malaysian facilities that test and produce semi-conductors are celebrating the re-opening of the nation’s economy

Companies such as Toyota, Ford and Skoda are have been hit hard by factory closures and staff shortages.

It follows a Covid-19 surge in Malaysia, which has claimed the lives of nearly 20,000 people.

The semi-conductor industry makes up about 6.8 per cent of Malaysia’s GDP and employs over 500,000 workers.

Malaysia accounts for seven percent of the semiconductor trade and 13 per cent of the global testing and packaging capacity around the world.

But bottle-necks in supply have impacted carmakers and companies around the world

Malaysia’s little-known but crucial role in the semiconductor industry came into focus in recent months as these top carmakers drastically reduced production targets citing pandemic-induced bottlenecks in Malaysia and neighbouring Thailand.

Could the US be the answer to saving the chip industry?

As the race to combat the global chip shortage continues the Biden administration is big to end the crisis

US President Joe Biden is preparing to spend $52 billion to boost the worsening shortage of semiconductor chips.

The White House is still waiting for congressional approval on the big spend but is pushing ahead with plans of how to invest the money wisely.

The Commerce Secretary says America “needs to incentivise the manufacturing of chips” if the country wants the crisis to end.

President Biden continues to be vocal on the global issue.