Malaysia Embraces Semiconductor Investments, Boosting Global Chip-Making Market
Malaysian Trade and Investment Minister, Liew Chin Tong, has announced that the country is strengthening its position in the global chip-making supply chain by embracing investments in both the backend and frontend of the semiconductor value chain.
During the National Electrical and Electronics (E&E) Forum 2023, organized by the Malaysian Semiconductor Industry Association (MSIA) in Kuala Lumpur, Minister Liew highlighted the potential of microchips to generate significant value addition and boost productivity and innovation. As a result, semiconductors and the electrical and electronics (E&E) sector have become crucial focus areas under Malaysia’s New Industrial Master Plan 2030 (NIMP 2030).
Malaysia currently holds a 7% share of the global semiconductor market and contributes to 23% of the United States’ semiconductor trade. It also accounts for 13% of global backend semiconductor output, excelling in chip assembly, packaging, testing, and electronics manufacturing services.
In addition to Minister Liew’s remarks, Clark Tseng, the Senior Director of the SEMI market intelligence team, emphasized Southeast Asia’s potential to attract more foreign direct investments in terms of equipment, fab capacity, and semiconductors. Tseng anticipates double-digit growth in semiconductor sales over the next two years, driven by various applications such as artificial intelligence, automotive, high-performance computing, and edge computing.
Malaysia’s strong presence in the semiconductor industry bodes well for the global chip-making market, as the country’s investments contribute to enhancing the sector’s capabilities and expanding its reach. With a focus on productivity and innovation, Malaysia recognizes the importance of semiconductors and the E&E sector in driving economic growth and technological advancement.
The government’s commitment to the New Industrial Master Plan 2030 reflects Malaysia’s determination to further develop its semiconductor industry and position itself as a key player in the global supply chain. As the country continues to invest in the backend and frontend of the semiconductor value chain, it is poised to play a significant role in shaping the future of chip-making and driving the growth of the global semiconductor market.
References:
– Malaysian Trade and Investment Minister Liew Chin Tong’s speech at the National Electrical and Electronics (E&E) Forum 2023: [include hyperlink]
– Malaysian Semiconductor Industry Association (MSIA): [include hyperlink]
– Clark Tseng, Senior Director of SEMI market intelligence team: [include hyperlink]
