Malaysia Aims for Over US$100 Billion Investment in Semiconductor Industry
Malaysia targets over US$100 billion in investment for its semiconductor industry. Focus on integrated circuit design, advanced packaging, and manufacturing equipment. Plans to establish 10 local companies with revenues between US$210 million to US$1 billion.
Malaysia is setting its sights on attracting more than US$100 billion in investment for its semiconductor industry, according to Prime Minister Anwar Ibrahim. The Southeast Asian country aims to position itself as a global manufacturing hub and capitalise on its strong presence in the sector.
With Malaysia already accounting for 13% of global testing and packaging in the semiconductor industry, it has successfully attracted significant investments from leading firms such as Intel and Infineon in recent years.
The investment sought by Malaysia will primarily focus on integrated circuit design, advanced packaging, and manufacturing equipment for semiconductor chips. Additionally, the country aims to establish at least 10 local companies specialising in design and advanced packaging for semiconductor chips, with projected revenues ranging from US$210 million to US$1 billion.
To support these ambitious targets, Malaysia plans to allocate $5.3 billion in fiscal support. Prime Minister Anwar Ibrahim stated that further details regarding the allocation would be announced at a later date.
Anwar emphasised Malaysia's capacity to diversify and move up the value chain, aiming for more high-end manufacturing, semiconductor design, and advanced packaging. The country's goal is to transition from backend chip assembly and testing to engaging in high-value front-end design work.
While no specific timeline was provided for achieving these targets, Malaysia has already taken steps to attract global tech companies and investors. Plans include the construction of Southeast Asia's largest integrated circuit design park, offering incentives such as tax breaks, subsidies, and visa exemption fees.
Malaysia's strategic positioning in the semiconductor sector is further strengthened by the diversification efforts of Chinese chip firms. As these firms seek assembly needs outside of China, Malaysia is well-positioned to capture additional business opportunities.
Notable developments include China's Xfusion partnering with Malaysia's NationGate to manufacture GPU servers, which are crucial for data centers and artificial intelligence applications. Shanghai-based StarFive is also establishing a design center in Malaysia's Penang state, while TongFu Microelectronics, in collaboration with U.S. chipmaker AMD, plans to expand its Malaysia facility in 2022.
International players have also recognised Malaysia's potential, with Germany's Infineon investing 5 billion euros ($5.4 billion) to expand its power chip plant in the country. Additionally, U.S. chipmaker Intel announced a $7 billion investment in Malaysia for the construction of an advanced chip packaging plant in 2021.
Malaysia targets over US$100 billion in investment for its semiconductor industry.
Focus on integrated circuit design, advanced packaging, and manufacturing equipment.
Plans to establish 10 local companies with revenues between US$210 million to US$1 billion.
Source: REUTERS