Malaysia to strengthen semiconductor ecosystem, eyes 15% market share by 2030 - MIDA | Malaysian Investment Development Authority
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Malaysia to strengthen semiconductor ecosystem, eyes 15% market share by 2030

Malaysia to strengthen semiconductor ecosystem, eyes 15% market share by 2030

23 May 2023

The government plans to further strengthen Malaysia’s semiconductor ecosystem in the hope of achieving a 15 per cent market share in the semiconductor assembly, test and packaging activities by 2030, compared with 13 per cent currently.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said one of the sustainable way to achieve this is to put an emphasis on science, technology, engineering and mathematics education among the young generation.

“As the National TVET (technical and vocational education and training) Committee chairman, I have also signed various memorandums of understanding with industry players so that the syllabus and learning modules in TVET institutions can be updated according to the need of the industry,“ he told a press conference here today.

He was speaking to reporters after officiating at the SEMICON Southeast Asia 2023 here today accompanied by Chief Minister Chow Kon Yeow.

He said Malaysia ranked among the top 10 global hubs for semiconductors and electronics, whereby overall Malaysia ranks as the seventh largest exporter of semiconductors in the world, with a market share of seven per cent.

Ahmad Zahid said Malaysia’s attractiveness as a global investment centre has attracted many high-tech companies from around the world to set up their operations here.

“The government is committed to working with industry stakeholders to map out the entire supply chain, and to develop targeted interventions that support the industry and drive growth. By working together, the country can achieve its shared goals and ensure the long-term success of the industry and the nation.

“This hopefully will lead to Malaysia emerging as the preferred digital hub in Southeast Asia a very real possibility one day,“ he added.

The three-day event from yesterday, themed ‘Boosting Agility and Resiliency for the Electronics Supply Chain’, will highlight critical areas of semiconductor industry growth including sustainability, smart manufacturing, smart mobility, smart medtech and workforce development.

The event is organised by SEMI, the global industry association serving the semiconductor and electronics manufacturing and design supply chain, with its strategic partners, the Malaysian Investment Development Authority (MIDA) and InvestPenang.

MIDA deputy chief executive officer (Investment Development) Lim Bee Vian said the electrical and electronics (E&E) industry is poised to continue its growth trajectory in 2023, driven by the increasing global demand for chips and semiconductor equipment whereby in 2022 alone, the industry attracted a total investment of RM29.3 billion from 106 projects, with 95.2 per cent coming from foreign sources.

“These investments not only contributed to economic growth but also created employment opportunities, including highly skilled positions.

“With a well-established E&E industry’s ecosystem, Malaysia has become the magnet for the world’s largest and most innovative electronics companies, including industry giants like Intel, ST Microelectronics, Infineon, Micron, Texas Instruments, TF AMD and Osram,“ she added.

Source: Bernama