0115 GMT - The U.S. rate increase could have minimal impact on Malaysia's semiconductor sector, as strong artificial-intelligence-related investment, data-center expansion and the broader semiconductor growth cycle continue to support demand, TA Securities analyst Chan Mun Chun says in a note. Tighter monetary policy could weigh on valuations, particularly for stocks trading at high multiples, although a stronger dollar could support earnings at export-oriented companies with dollar-denominated revenue, he says. The sector's recovery could remain uneven, with growth led by integrated-circuit design, optoelectronics and semiconductor packaging and testing. Companies exposed to AI and data centers should benefit, while those reliant on PCs and smartphones could face pressure from higher memory costs, he adds. TA Securities maintains a neutral rating on Malaysia's semiconductor sector, pegging Dagang NeXchange as its top pick.