Malaysia is setting its sights on the semiconductor industry with a massive investment plan of over $100 billion. Prime Minister Anwar Ibrahim disclosed this ambitious goal, aiming to draw in at least 500 billion ringgit for the semiconductor sector.
Malaysia’s semiconductor industry already holds a significant position globally, accounting for 13% of testing and packaging. With major investments from leading companies like Intel and Infineon, the country is looking to solidify its status as a manufacturing hub on a global scale.
The aim is to attract investments for integrated circuit design, advanced packaging, and manufacturing equipment for semiconductor chips. Furthermore, Malaysia is striving to establish 10 local companies focused on semiconductor chip design and advanced packaging. These companies are targeted to generate revenues ranging from $210 million to $1 billion.
To support these initiatives, Malaysia has allocated $5.3 billion in fiscal aid. The goal is to diversify and move up the value chain, focusing on high-end manufacturing, semiconductor design, and advanced packaging. The prime minister emphasized Malaysia’s capabilities in elevating its semiconductor industry to greater heights.
In pursuit of these objectives, Malaysia is planning to construct Southeast Asia’s largest integrated circuit design park. Various incentives such as tax breaks, subsidies, and visa exemption fees will be offered to attract global tech companies and investors to participate in this endeavor.
Overall, Malaysia’s semiconductor sector is poised for further growth as Chinese chip firms seek opportunities beyond China. With strategic partnerships and investments from key players like Xfusion, StarFive, Infineon, and Intel, Malaysia is well-positioned to capture a larger share of the semiconductor market and drive innovation in the industry.
The future looks promising for Malaysia’s semiconductor industry, with a clear vision and robust investment plans in place to propel the sector to new heights.
