Malaysia aims to attract more investments in its semiconductor sector, targeting at least $107 billion in foreign and local investments over the next decade, Prime Minister Anwar Ibrahim told participants at the SEMICON Southeast Asia 2024 (SEMICON SEA) held in the capital Kuala Lumpur as he unveiled the National Semiconductor Strategy (NSS).
Structured as a three-phase plan backed by $5.3 billion in fiscal funding and targeted incentives, NSS is designed to transform the country into a global powerhouse in the semiconductor industry, particularly for chips used in electric vehicles, according to Ibrahim.
“The NSS is a robust, agile, inclusive, and forward-thinking strategy designed to foster collaboration with companies across ASEAN, Asia, and the global stage. We have a strong capacity to diversify and move higher in the value chain (and) to move towards even more high-end manufacturing, semiconductor design and advanced packaging,” he said.
To date, Malaysia holds 13% of the global market for packaging, assembly, and testing services for semiconductors and is the world’s sixth-largest exporter of semiconductors.
Some global semiconductor giants have recently invested in Malaysia, including Intel ($7 billion) and Texas Instruments ($3.1 billion). Intel’s expansion will entail the construction of an advanced 3D chip packaging facility, its first overseas facility for 3D chip packaging.
Malaysia is considered one of the three most developed semiconductor production hubs in Asia, along with South Korea and Taiwan.
