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Malaysia aims to double global market share in chip industry
Malaysia is looking to increase its global market share in the semiconductor trade by moving up the value chain into chip design. The country is hoping to double its current 7 per cent stake in the global semiconductor trade within the next five years. The government is offering incentives such as tax breaks and visa exemption fees to attract big tech companies and investors. A proposed plan for an IC design park in Puchong, which is said to be the largest in South-east Asia, is also in the works. The park is expected to be operational in July and has already secured commitments from several companies, including British chip-design giant Arm Holdings, Taiwan’s Phison Electronics, and home-grown IC design solutions provider SkyeChip. The move to reposition Malaysia beyond production into front-end design work is seen as a positive step to propel the country out of the low-value semiconductor segment. Malaysia's semiconductor industry contributes to an estimated 25 per cent of the country's gross domestic product, with about 40 per cent of exports coming from the electrical and electronics sector. The country is hoping to increase its export share worldwide, particularly in the automotive industry and data centers, with the new chip design park.
