In 2008, semi-conductor devices, being a major export product for the E&E industry, accounted for RM88.3 billion (34.8%) of total E&E exports valued at RM253.8 billion. Exports of semi-conductor devices for the period January to October 2009, totalled RM75.01 billion, compared with RM77.4 billion for the same period in 2008. Despite the reduction, export of semi-conductor devices still showed an upward trend for the period from January to October 2009. Exports of semi-conductor devices increased in October 2009 to RM9.4 billion, compared with RM8.7 billion and RM8.8 billion in September and August 2009 respectively.

The increase in export performance during January to October 2009 was due to, among others, the increase of semi-conductor devices exported to China. As of October 2009, Malaysia’s exports of semi-conductor devices to China recorded an increase of 26.7% to RM20.4 billion, compared to RM16.1 billion during the corresponding period in 2008. Currently, China is Malaysia’s largest export market for semi-conductor devices followed by Singapore, Hong Kong, Germany, the United States of America and Japan. China’s domestic electronics market started to rebound in the first quarter of 2009 as the Chinese government’s economic stimulus package took effect. The stimulus package has subsequently spurred semi-conductor demand which is anticipated to return to double-digit percentage growth in 2010 as a result of recovery from the global economic crisis.