China's abrupt announcement of controls from Aug 1 on exports of the metals has ramped up a trade war with the US and could potentially cause more disruption to global supply chains.

Three key buildings of the sprawling area, comprised of thousands of stalls selling microchips, telephone parts, and other components to manufacturers, will stay closed until Sept 2.

This comes as Malaysia seeks to tackle a shortage in semiconductor chips after supplies were disrupted due to curbs imposed to stem a surge in Covid-19 cases this year.

Shortages – exacerbated by years of under-investment in basic chip production, while high-end semiconductors were favoured – are expected to last at least two years.