Malaysia is becoming increasingly attractive for semiconductor enterprises. This stems from escalating tensions between the US and China, which drive companies to spread their operations. Known as Southeast Asia’s Silicon Valley, Malaysia is set to host SEMICON Southeast Asia 2024, the region’s premier gathering of the Electronics Supply Chain. In this article, we’ll explore the promising growth prospects of Malaysia’s semiconductor industry and learn about what to expect from the upcoming SSA 2024 event in the country.
Malaysia has a steadily growing semiconductor industry
Malaysia stands out as a global hub for microelectronics, excelling in manufacturing, packaging, and test technology. The country increasingly relies on advancing this value chain, from the initial development to the construction phase. With robust infrastructure and over 50 years in the ‘back end’ of semiconductor manufacturing specifically in assembly, testing, and packaging, Malaysia defines its position in the regional industry.
The semiconductor industry holds an important position in the whole economy
In 2023, Malaysia’s Electrical and Electronics (E&E) sector played a pivotal role in driving and sustaining the nation’s export economy, contributing to over 40% of total exports. This underscores the effectiveness of robust policies in fortifying the industry’s resilience, further reinforced by initiatives like the National Semiconductor Strategic Task Force (NSSTF) and the New Industrial Master Plan 2030 (NIMP2030).
Moreover, according to a report released on February 18 by the Malaysian Investment Development Authority, the country accounts for 13% of the worldwide market for chip packaging, assembly, and testing services. In 2023, despite a decline in global chip demand, exports of semiconductor devices and integrated circuits climbed by 0.03% to US$81.4 billion.
More semiconductor companies are entering the Malaysian market
In December 2021, the multinational semiconductor manufacturer Intel announced that it would invest about US$7 billion (RM33.18 billion) to construct a chip packaging and testing factory in Malaysia.
A rising number of domestic and international semiconductor companies are operating in Malaysia in several industrial sectors, such as Advanced Micro Devices (AMD) Malaysia, Infineon Technologies Malaysia, and Intel Malaysia.
These companies’ existence highlights Malaysia’s position as a hub for semiconductor manufacturing and research. These companies contribute to the nation’s diverse semiconductor environment by showcasing Malaysia’s expertise in semiconductor production, design, testing, and equipment development areas.
The SSA 2024 brings Malaysia great opportunities to expand its influence on the regional industry
The Semicon Southeast Asia is an international trade fair for semiconductor technology. The exhibition’s goals are to advance semiconductor technology via design, creativity, and technology. The fair is held once a year, rotating between Singapore and different parts of Malaysia and the surrounding areas. Its objectives are to broaden its reach, enhance its international aspect, and encourage more regional participation.
The SSA event will take place in Malaysia this year due to the country’s strong economic growth and substantial productivity boosts from the electrical and electronics sectors. As they take advantage of the rising demand for semiconductors throughout the world, Malaysian domestic E&E firms hope that the event will help them expand their presence in the region.
The host nation also hopes to improve its standing in the global E&E value chain by concentrating on areas like integrated circuit design, wafer fabrication, and high-tech industries and by emphasizing sustainability, innovation, and competitiveness.
The appearance of the leading semiconductor company in Vietnam, FPT Semiconductor poses an opportunity to introduce Vietnamese chips to the international market at the Semicon Southeast Asia 2024 Event.
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