Electronic Components
Electronic components serve as indispensable building blocks within a diverse range of electrical and electronic devices, encompassing consumer electronics, industrial electronics, and electrical appliances. This is evident in its investment impact, with the sub-sector contributing 59% of investments in the E&E industry in 2025, mainly driven by foreign investment.
This sub-sector plays a pivotal role in the expansion of the E&E industry, spanning an extensive array of products. Encompassing semiconductor devices like integrated circuits (ICs) and their design, as well as packaging activities, it extends to passive components including capacitors, resistors, connectors, and inductors. Additionally, the sub-sector covers components like storage media, disk drive parts, printed circuit boards (PCBs), LED substrates, epitaxy, microcontrollers, and various metal and plastic parts tailored for E&E applications. Projects approved were for wafer fabrication, semiconductor devices, integrated circuits, printed circuit boards (PCBs), and sensors.
Semiconductor Ecosystem
The semiconductor industry remains a major contributor to Malaysia’s manufacturing landscape, with a higher concentration of multinational companies (MNCs) compared to domestic firms. Local industry strengths are primarily concentrated in downstream activities, particularly in assembly (advanced packaging), testing, and system integration. Semiconductor chips and equipment shortages continue to persist amid strong global demand for advanced chips driven by emerging technologies such as electric vehicles (EVs), autonomous driving, 5G, the Internet of Things (IoT), data centre infrastructure, artificial intelligence (AI) computing, cloud computing, and blockchain infrastructure applications.
Increased investments in both the upstream and downstream semiconductor ecosystem continue to be strongly encouraged. This includes investments in integrated circuit (IC) design, engineering services, advanced semiconductor solutions, and technologies supporting wafer fabrication, in addition to strengthening Malaysia’s robust and advanced IC packaging and semiconductor manufacturing ecosystem, encompassing:
a) Design IC / system
b) Wafer Fabrication/ Front End Activities
c) IC Packaging/ Back End Activities & Engineering Services Solution.
Home Grown Electronic Companies
MNCs in Malaysia have brought innovation, jobs, and an evolved local supply chain, linking the nation to the global value chain. Furthermore, streamlined local supply chains have boosted Malaysia’s competitiveness and global market presence.
Semiconductor
IC Design
Wafer Fabrication
LED
Our Investors' Highlights
- Micron Memory Malaysia Sdn. Bhd.
