Malaysia Welcomes Investments In Semiconductor Value Chain
KUALA LUMPUR, Nov 6 (Bernama) -- Malaysia, which holds an important position in the global chip-making supply chain, embraces investments in both the back-end and front-end of the semiconductor value chain, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.
He said the back-end manufacturing of semiconductors is crucial because advanced packaging is becoming an increasingly complex industry, and Malaysia's participation in the global supply chain is dependent on it.
“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 electrical and electronics (E&E) sector are an important focus area under the New Industrial Master Plan 2030 (NIMP 2030),” he said in his opening speech at the National E&E Forum 2023 organised by the Malaysian Semiconductor Industry Association (MSIA) here.
Liew emphasised that Malaysia’s semiconductor industry holds a seven per cent share of the global market and contributes 23 per cent of the United States’ (US) semiconductor trade.
“It is a fact that is not widely acknowledged in the US although I did hear it myself from US Secretary of Commerce Gina Raimando when I visited Detroit in May that when factories in Malaysia were shut down during the COVID-19 lockdowns, the automotive industry in Detroit had to cease operating, too,” he added.
Malaysia accounts for 13 per cent of global back-end 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 the region could attract more foreign direct investments.
“Southeast Asia needs to be certain of the type of investments we want to attract. I see a lot of opportunities in equipment materials, foundry and others,” he said.
He added that semiconductor sales growth would be in the double digits for the next two years, as several applications, including artificial intelligence, automotive, high-performance computing, and edge computing, would drive the sector.
-- BERNAMA
