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 81% of investments in the E&E industry in 2022, 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.

0.8%

Domestic Investments

(RM0.2 bil)

RM23.7 bil

Total Approved Investments
in 2022

80%

99.2%

Foreign Investments

(RM23.5 bil)

RM23.7 bil

Total Approved Investments
in 2022

0.8%

Domestic Investments

(RM0.2 bil)

99.2%

Foreign Investments

(RM23.5 bil)

40

Approved Projects

17,498

Job Opportunities 

For more statistics, please click here.

Global Foundry Market
(2018-2027, RM billion)

The global market for Semiconductor Foundry, estimated at US$138 billion in the year 2022, is projected to reach a revised size of US$219.3 billion by 2028. This projection indicates a CAGR of 8.0% during the forecast period from 2023 to 2029.

Semiconductor Ecosystem

The semiconductor industry is a major contributor to Malaysia’s manufacturing landscape, with a higher concentration of multinational companies (MNCs) than domestic ones. Local industry strengths mainly reside downstream, covering assembly (advanced packaging), testing, and system integration. Although there has been some relief, there continues to be a global shortage of semiconductor chips and equipment. This scarcity persists due to robust demand for advanced chips in emerging technologies like electric vehicles (EVs), autonomous driving, 5G, and the Internet of Things (IoT).

 

Prospective investors can draw reassurance from the industry’s resilience amid the global pandemic, highlighting adaptability. Despite COVID-19 disruptions and government actions, there was a spike in demand for specific Electrical and Electronics (E&E) products, propelling semiconductor market growth. As of August 2023, 86% of Malaysians were fully vaccinated, reducing the pandemic’s impact and fostering growth in Malaysia’s E&E ecosystem.

 

We enthusiastically welcome increased investments in both the upstream and downstream semiconductor ecosystem. This includes IC design, engineering services, and solutions to bolster wafer fabrication, alongside the robust and advanced IC packaging industry in Malaysia, 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

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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