Malaysian tech stocks slammed by Trump, then by DeepSeek

KUALA LUMPUR — Malaysia’s semiconductor sector finds itself in the midst of significant upheaval, grappling with two challenges: the rapid rise of DeepSeek — China’s artificial intelligence model — and the reintroduction of U.S. protectionist trade policies.

While U.S. President Donald Trump’s policies are expected to remain as a drag, investors are starting to see opportunities for Malaysian tech stocks in the global shift to cheaper AI models like DeepSeek, if the country’s industry can maintain its competitiveness in the market.