Malaysia attracts investments in semiconductor value chain

Kuala Lumpur – Malaysian Trade and Investment Minister Liew Chin Tong has said the country, which holds an important position in the global chip-making supply chain, is embracing investments in both the backend and frontend of the semiconductor value chain.

Speaking at the opening ceremony of the National Electrical and Electronics (E&E) Forum 2023 organised by the Malaysian Semiconductor Industry Association (MSIA) on November 6 in Kuala Lumpur, the minister said microchips have the potential to generate far greater value addition, with a stronger multiplier effect, through a boost in productivity and innovation, which is why semiconductors and the E&E sector are an important focus area under the New Industrial Master Plan 2030 (NIMP 2030).

Malaysia’s semiconductor industry holds a 7 per cent share of the global market and contributes 23 per cent of the United States’ (US) semiconductor trade.

Malaysia accounts for 13 per cent of global backend semiconductor output and excels in chip assembly, packaging and testing, as well as electronics manufacturing services.

Meanwhile, speaking on the equipment, fab capacity and semiconductors in Southeast Asia, SEMI market intelligence team senior director Clark Tseng said that the region can attract more foreign direct investments.

He added that semiconductor sales growth will be in the double digits for the next two years, as several applications, including artificial intelligence, automotive, high-performance computing, and edge computing, will drive the sector.

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