Electronic Components

Electronic components are essential elements embedded in all electrical and electronic devices such as 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 57% (in 2020) 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.

43%

Domestic Investments

(RM340 mil)

RM796 mil

Total Approved Investments
in 2020

80%

57%

Foreign Investments

(RM456 mil)

RM796 mil

Total Approved Investments
in 2020

43%

Domestic Investments

(RM340 mil)

57%

Foreign Investments

(RM456 mil)

24

Approved Projects

1,656

Job Opportunities 

For more statistics, please click here.

Global Foundry Market
(2018-2027, RM billion)

Amid the COVID-19 crisis, the global market for Semiconductor Foundry estimated at US$74.1 billion in the year 2020, is projected to reach a revised size of US$141.1 billion by 2027, growing at a CAGR of 9.6% over the analysis period 2020-2027.

Semiconductor Ecosystem

The semiconductor industry is one of the major contributors to 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 include assembly (advanced packaging) and test, as well as system integration.

 

Prospective investors should be heartened by the resilience of this industry in the face of the global COVID-19 pandemic, a clear sign of industry players’ adaptability and agility. As the pandemic and governmental response caused tremendous disruptions in manufacturing operations – including E&E – it also resulted in significantly higher demand for specific E&E products which in turn spurred the overall growth for semiconductors. Given that Malaysia targets to vaccinate 80% of its population by the end of 2021, there are plenty of opportunities in Malaysia’s E&E ecosystem for investors.

 

We welcome more investments in the upstream and downstream semiconductor ecosystem activities involving IC design, engineering services and solutions 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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