Electronic Components

Electronic components are essential elements embedded in all electrical and electronic devices such as in the consumer electronics, industrial electronics and electrical appliances. This is reflected in its investment performance whereby the sub-sector contributed the lion’s share of investment in the electrical and electronics (E&E) industry at 54% (in 2019) and were primarily driven by foreign investment.

 

This sub-sector provides vital growth to the E&E industry due to the wide range of products it covers from semiconductor devices such as wafers integrated circuits (IC) and IC design and packaging activities to passive components such as capacitors, resistors, connectors, inductors, crystal quartz and oscillators. It also covers components such as storage media, disk drive parts, printed circuit boards (PCB), LED substrates and epitaxy, microcontrollers and other metal and plastic parts for E&E applications.

10%

Domestic Investments

(RM1.07 bil)

RM13.91 bil

Total Approved Investments
in 2019

80%

90%

Foreign Investments

(RM9.69 bil)

RM13.91 bil

Total Approved Investments
in 2019

10%

Domestic Investments

(RM1.07 bil)

90%

Foreign Investments

(RM9.69 bil)

45

Approved Projects

6,448

Job Opportunities 

Global Foundry Market
(2018-2027, RM billion)

The growth in the semiconductor industry is strongly contingent on growths in wafer fabrication activities and the market is expected to grow at a CAGR of ~6%
with growth mainly driven by the increasing proliferation of the new technology nodes (<10/7 nm) that is expected to grow at a CAGR of ~26% from 2018 to 2027. 

Semiconductor Ecosystem

The semiconductor industry is one of the major contributors to the manufacturing activities in Malaysia. The ecosystem has a higher presence of multinational companies (MNCs) compared to Malaysian companies. The strength and capabilities of local industry players are dense in the downstream of the semiconductor value chain and encompasses assembly (advanced packaging) and test, as well as system integration.

 

We welcome more investments in the upstream and downstream semiconductor ecosystem activities involving IC design, engineering services and solution to support wafer fabrication as well as the presence of strong and advance IC packaging industries in Malaysia:

a) Design IC / system
b) Wafer Fabrication/ Front End Activities
c) IC Packaging/ Back End Activities & Engineering Services Solution.

Home Grown Electronic
Companies

The presence of MNCs in Malaysia has brought the latest technological innovations and creation of skilled jobs. This has nurtured the local supply chain over the years and provided opportunities for Malaysia to be linked to the global value chain. The optimisation of local supply chains or vendors has also pushed Malaysia to be competitive and penetrate the global market.

Semiconductor

IC Design

Wafer Fabrication

LED

Our Investors' Highlights

Mircon is global leader in providing innovative memory solutions and data storage products that complements huge data requirements for advanced computing, particularly in the era of industry 4.0. Micron Technology Inc's new centre of excellence for solid state drive (SSD) assembly and test in Batu Kawan is expected to create 1,000 high-value jobs in the electrical and electronics (E&E) sector once it is completed in 2021.

- Micron Memory Malaysia Sdn. Bhd.

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Learn more about the essential forms and guidelines to help you get started on your journey in Malaysia’s manufacturing sector.
Company can submit application and track the application status online via MIDA InvestMalaysia portal at investmalaysia.mida.gov.my
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