The Monocle Minute

Few industries are as prone to changing geopolitical currents as semiconductor manufacturing. The chips are essential to the functioning of phones, computers, cars, military aircraft and the internet, plus a major point of tension in the US-China relationship as both countries race for technological dominance. The fact that Taiwan, the world’s expert semiconductor-chip manufacturer, makes about 90 per cent of top-end semiconductors is no small part of the ongoing dispute over the island’s sovereignty. But uncertainty over its simmering tensions with China is growing.

One country has found itself at an advantage as a result: Malaysia. The nation’s political stability and neutrality have been a boon for its relatively modest semiconductor industry as companies are keen to move their supply chains away from China (to avoid US tariffs and sanctions) and Taiwan (it might get invaded), and flock to Southeast Asia. The growing practice of “friendshoring” – prioritising trade with allies rather than the cheapest or most convenient option – is great for Malaysia, which is friendly with both the US and China. Tens of billions of dollars in foreign investment have flowed into Malaysia’s semiconductor factories and the country’s government has earmarked at least $100bn (€96bn) to build more.

Malaysia’s ambitions are clear and the stars seem to be aligning geopolitically. But this middle-income country is still mostly a middleman in the semiconductor industry. It makes important contributions to chip packaging and assembly but misses out on the much more lucrative manufacturing end that Taiwan dominates. Infrastructure and job investments are commendable but to become truly globally competitive, Malaysia must also fund advanced research and development and attract talent at the earliest possible stage. It must be able to foster real innovation and shouldn’t rest easy on its politically neutral laurels. Balancing the US and China, especially under the incoming Donald Trump administration, is nothing less than a tightrope walk. If it succeeds, though, Malaysia may be able to go from an important cog in a global industry to a prosperous power player on the world stage.

Naomi Xu Elegant is a Monocle writer based in Singapore. For more opinion, analysis and insight, subscribe to Monocle today.

Italian label Loro Piana has unveiled a winter pop-up in the heart of Kitzbühel, Austria. The new space in the town’s centre will cater to skiers and alpine aficionados heading there for the infamous Hahnenkamm downhill race in January. The shop is inspired by the Mongolian Gher, a traditional nomadic dwelling from the region where Loro Piana sources its fine cashmere.

Its wooden interiors showcase the Loro Piana holiday collection, from its premium après-ski line to evening wear and accessories. Outside, visitors can perch next to a heater and enjoy the view of the snowcapped Austrian Alps in seats adorned with sheepskin and plaid. The pop-up is open until mid-March – it’s worth racing there before the ski bums nab the best seats.

Turkey has taken a giant leap forward in its space programme after Somalia’s president, Hassan Sheikh Mohamud, announced that the country will allow Ankara to develop a spaceport on its soil. The launchpad, which will reportedly cost about $350m (€337m), will allow Turkey to safely launch test rockets over the Indian Ocean so as to reduce the risk of debris falling on other countries.

The move is strategic: Somalia is considered Turkey’s strongest military ally in Africa and, in offering the use of its vast coastline, Mohamud believes that the project will bring billions of dollars of investment to the country. From 2013 to 2023, Turkish state spending on space research and development projects rose from $4.7m (€4.5m) to $63m (€60.5m). It remains to be seen whether such a costly program will pay dividends at a rocky moment for the Turkish economy. Nevertheless, the spaceport is a statement: Turkey is taking both its African interests and its interstellar ambitions seriously.

Reijmyre, one of Sweden’s longest-running glassworks, has collaborated with interior-design studio Svenskt Tenn to reimagine its schnapps glass from the 1700s. We’d opt for the deep-green or blue shot glasses, which you could even mix and match at the Christmas table. Skål!

We discuss the 10-year long development process behind the world’s first inflatable cycle helmet and how Ventete spotted the cultural shift toward active, eco-friendly commuting. Plus: how to stay ahead of trends in 2025 from business to travel and hospitality.