28-5-2024 (KUALA LUMPUR) In a bold move to strengthen its position in the global semiconductor supply chain, Malaysia has set its sights on attracting at least 500 billion ringgit (US$107 billion) in investment for its burgeoning semiconductor industry. Prime Minister Anwar Ibrahim unveiled this ambitious target on Tuesday, underscoring the Southeast Asian nation’s commitment to becoming a major player in the highly competitive and strategic sector.
Malaysia has long been a significant contributor to the semiconductor industry, accounting for an impressive 13 percent of global testing and packaging. In recent years, the country has successfully drawn multi-billion dollar investments from leading firms, including tech giants Intel and Infineon, further solidifying its position in the global supply chain.
During his speech at an industry event, Prime Minister Anwar Ibrahim outlined the specific areas where the targeted investment would be directed. These include integrated circuit design, advanced packaging, and manufacturing equipment for semiconductor chips – all critical components of the semiconductor production process.
Complementing the investment drive, Malaysia aims to establish at least 10 locally-owned companies specializing in design and advanced packaging for semiconductor chips. These homegrown firms are expected to generate revenues ranging from US$210 million to an impressive US$1 billion, further bolstering the country’s domestic capabilities in this high-tech sector.
To support these ambitious goals, the Malaysian government has pledged substantial fiscal support amounting to US$5.3 billion. This financial commitment underscores the nation’s determination to create a conducive environment for investment and innovation in the semiconductor industry.
While Prime Minister Anwar Ibrahim did not provide a specific timeline for achieving these targets, the announcement itself serves as a clear signal of Malaysia’s aspirations to become a regional and global hub for semiconductor manufacturing and research.
