Malaysia plays significant role in semiconductor supply Chain — Onsemi VP
18 Nov 2021
US semiconductor company, onsemi, has sharpened its strategy to drive disruptive innovation that contributes to a sustainable ecosystem in vehicle electrification, advanced safety, alternative energy, and factory automation.
Global Vice President (VP) Jose Hernandez said the United States (US) is interested to work with countries like Malaysia that play a very significant role in the supply chain for semiconductors.
“Semiconductor has been a critical shortage everywhere in the world for the past few months, and this is having a significant impact on the availability of everyday products in the US.
“The US contingent is on a visit here today and they are on a commercial mission to strengthen the partnership with Malaysia…they are very interested in the supply chain of semiconductor sector,” he said to reporters at the onsemi facility, Senawang Industrial Estate, here today.
Earlier, US Secretary of Commerce Gina M. Raimondo, who is on a four-day visit to Asia, visited the onsemi facility.
Hernandez added the company has been in Malaysia since 1979 and the country is one of its most strategic locations to address the current global chip shortage.
“Business prospect in Malaysia is very good. We do not only do manufacturing but also the design and development of advanced technologies for all kinds of new things.
“Most recently, we’re working very much on sustainability. For example, we are doing design and development of electric vehicle power modules that will help us make the world a better place,” he said.
The company has learned all the dynamics of the supply chain especially during this COVID-19 crisis and the business models are changing in terms of engagement with its customers, he said.
Hernandez said, before the pandemic, the engagements were very transactional and now are transforming into a more long-term partnership wherein the company is engaging with key customers on long-term supply agreements.
Meanwhile, Raimondo added the US views Malaysia as a critical partner in the semiconductor industry after a 50-year relationship with semiconductor companies in this country.
“You do a lot of packaging, assembling, testing, excellent quality. The supply chain is very complicated and we view our relationships here in Malaysia to be extremely important, and we’re looking to do even more, we want to work more closely with your government to monitor the supply chain.”
She said the US is going to invest billions of dollars to incentivise the creation of more semiconductor facilities in America, but also in allied countries like Malaysia.