‘Malaysia set to become Asia semiconductor hub‘ - MIDA | Malaysian Investment Development Authority
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‘Malaysia set to become Asia semiconductor hub‘

‘Malaysia set to become Asia semiconductor hub‘

29 May 2024

Malaysia is expected to become a semiconductor hub in Asia given its significant role in the country’s economy, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said semiconductor exports currently account for 40% of the country’s total exports. “This makes Malaysia the sixth largest exporter in this sector,” he disclosed during the launch of Semicon Southeast Asia 2024 at Malaysia International Trade and Exhibition Centre here today.

Nearly 500 exhibitor companies are featuring their products in more than 1,000 exhibition booths at the three-day event.

Tengku Zafrul said global demand for semiconductors is expected to reach US$1 trillion (RM4.69 trillion) by 2030 with continuous growth projected. “Malaysia aims to leverage its 50-year presence in this industry and advance to the next level of value by capitalising on advancements in artificial intelligence (AI) technology and everyday applications.”

According to him, Malaysia has a proud history and a strong track record in the semiconductor sector. “For more than five decades, our country has built a strong legacy as a key player in the Asean semiconductor circuit, while playing an important role in the global electronics supply chain,” he said.

Tengku Zafrul said this strategic arrangement has provided the country’s electrical and electronics (E&E) industry, especially the semiconductor sector, with access to a global market of over four billion people.

He stated that Malaysia is increasingly seen as an important Southeast Asian nation in helping to secure the global supply chain for the industry and ensuring the continued growth of the strategic importance of the semiconductor sector.

“The increasing global dependency on semiconductors has stimulated research and manufacturing in Southeast Asia,” he remarked.

He said this also makes the components more crucial in modern electronics and advanced research that can address or exacerbate global issues.

Meanwhile, SEMI CEO Ajit Manocha said Southeast Asia is well-positioned to help accelerate the semiconductor industry’s unprecedented growth driven in part by the game-changing innovations such as GenAl.

“Events like Semicon Southeast Asia play a crucial role in fostering dialogue, partnership, and innovation. The growth in participation this year reflects the growing relevance of this event and the collective commitment to advancing the semiconductor ecosystem to Southeast Asia and beyond,” said Ajit.

Meanwhile, Malaysian Investment and Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said, “We are steadfast in our commitment to position Malaysia as a premier investment destination, particularly in the thriving E&E industry. With our investor-friendly policies, well-established infrastructure, and highly skilled talent pool, Malaysia offers an ideal environment for businesses seeking to establish and broaden their presence in Asia. We are prepared to facilitate and accommodate advanced technologies brought by our investors.”

Invest Selangor Bhd CEO Datuk Hasan Azhari said that they are happy to partner with SEMI Southeast Asia and showcase Selangor’s attractiveness as an investment destination through industrial park visits to Elmina Business Park and Eco World Business Park V, and they aim to demonstrate the conducive business environment and abundant opportunities available in Selangor.

Source: The Sun