With the theme “Enhancing the flexibility and resilience of the global electronics supply chain”, the Semicon Southeast Asia 2024 exhibition for the electronics industry in the region took place on May 28 in Malaysia.
3 Phase Strategy
Malaysian Prime Minister Anwar Ibrahim affirmed that in 50 years of development and becoming the 6th largest exporter of semiconductors and 10th largest exporter of electrical and electronic products (E&E), Malaysia is confident that it has strong capabilities to diversify and move up the value chain, including semiconductor design, outsourced assembly and test (OSAT), advanced packaging as well as complex semiconductor manufacturing equipment.
According to Mr. Ibrahim, Malaysia’s vision is to create an ecosystem that is driven by dynamic, world-class local companies that can compete regionally and globally based on innovation. Therefore, Malaysia positions itself as a “bridge” to connect parties willing to collaborate on technology, as well as a “neutral” position to ensure that all technology collaborations serve positive purposes. Global demand for semiconductors is expected to reach US$1 trillion by 2030. Malaysia is making efforts to tap into this market, with the aim of becoming the semiconductor hub in Asia.
Notably, Mr. Ibrahim announced an overview of Malaysia’s National Semiconductor Strategy plan with three phases, including building the OSAT platform, developing factories and attracting foreign direct investment; designing, manufacturing and testing advanced memory and logic chips; enhancing development support for companies designing world-class semiconductors, manufacturing equipment, advanced packaging and attracting advanced chip buyers. To realize the National Semiconductor Strategy, the Malaysian government has set five targets, allocating at least USD 5.3 billion in financial support and incentives. In addition, to reaffirm its commitment to becoming a global leader in the semiconductor industry, the National Semiconductor Strategy Task Force has been established to focus on promoting innovation, enhancing research and development capabilities and promoting the commercialization of technology semiconductors.
Malaysia’s Minister of Investment, Trade and Industry, Mr. Tengku Datuk Abdul Aziz, said that semiconductor exports currently account for 40% of the country’s total exports, making Malaysia the 6th largest exporter in this sector. With 50 years of experience in building and developing the semiconductor industry, Malaysia will continue to enhance its position and role in the semiconductor industry through the application of high technology, especially artificial intelligence (AI).
Comprehensive support
With supportive policies, modern infrastructure and a highly skilled workforce, Malaysia is becoming an ideal destination for businesses looking to establish a presence and expand their operations in Asia.
In 1972, a rice paddy on the outskirts of Penang became Intel’s first manufacturing facility outside the United States, after the Malaysian government introduced generous incentives under the Free Trade Zone Act of 1971 to attract export-oriented businesses. The act created a free trade zone on the island of Penang, with tax exemptions, industrial estates, warehouses, and a road transport system linked to the port. Almost immediately, semiconductor companies such as National Semiconductors, AMD, Motorola, HP, Renesas, and Texas Instruments flocked to Malaysia.
At that time, Malaysia’s goal was simply to create jobs for its people. With low barriers to entry, semiconductor corporations were immediately attracted by a cheap and English-speaking workforce. In 1986, the Malaysian government initiated the “Industrial Master Plan” to enhance the country’s manufacturing capabilities, with semiconductors being identified as a key sector. Shortly before that, the Malaysian Institute of Microelectronic Systems (MIMOS) was established under the Prime Minister’s Office in 1985 with the aim of nurturing the domestic semiconductor industry, facilitating industry innovation and keeping up with the global market.
At the turn of the 21st century, Malaysia faced a new challenge as its universities failed to produce the quantity and quality of scientists and engineers needed by companies like Intel, AMD and Renesas – all of whom were looking to hire more engineers. Between 1997 and 2007, when seven multinational corporations considered the potential for expanding their chip manufacturing operations to Asian countries, they deemed Malaysia an unattractive option – and chose China instead.
But by 2024, the picture for Malaysia has changed dramatically. The US-China rivalry has begun to take a heavy toll on the semiconductor industry, and this appears to have given new life to Malaysia’s semiconductor sector. OSAT companies have flocked to the Southeast Asian nation, helping Malaysia control 13% of the global chip packaging and testing market. This is evident in the growing inflow of money into the country. Malaysia’s total FDI will reach nearly $40 billion by 2023, more than double the total FDI in 2019.
VIET ANH
Source: https://www.sggp.org.vn/malaysia-voi-chien-luoc-phat-trien-nganh-ban-dan-post742700.html
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