Malaysia consolidates position in semiconductor supply chain

Malaysia can maintain its position as a middle power in the global semiconductor supply chain through the implementation of the National Semiconductor Strategy (NSS), which was launched in May last year, according to Deputy Investment, Trade and Industry Minister Liew Chin Tong.

The official said recently that the country’s semiconductor industry, which has been developing for over 50 years, possesses its own strengths, particularly in outsourced testing and packaging activities, making Malaysia one of the primary investment destinations for multinational corporations.

Other factors, such as strategic location, comprehensive infrastructure, and skilled local workforce, further enhance the country’s appeal to foreign investors in this high-technology industry.

Through the NSS, the Government focuses on attracting foreign investments that possess advanced technologies, including advanced packaging.

It aims to establish at least 10 Malaysian companies in advanced design and packaging with annual revenues of $1 billion, as well as 100 high-income local semiconductor-based companies generating annual revenues of RM1 billion ($240 million).

From early 2024 through the first quarter of 2025, the NSS has made progress, including training 4,557 engineers and technical personnel; identifying over 23,000 potential job opportunities; securing investments worth RM52 billion; and founding five local integrated circuit (IC) design companies, he said.