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Malaysia Aims for US$107 Billion in Semiconductor Industry Investment
Malaysia's Prime Minister Anwar Ibrahim has announced that the country is targeting at least 500 billion ringgit (US$107 billion) in investment for its semiconductor industry. This move is part of Malaysia's efforts to position itself as a global manufacturing hub. The investment will be focused on integrated circuit design, advanced packaging, and manufacturing equipment for semiconductor chips. Anwar also stated that Malaysia aims to establish at least 10 local companies in design and advanced packaging for semiconductor chips, with revenues between US$210 million to US$1 billion. The country will allocate US$5.3 billion in fiscal support to meet these targets. Malaysia's plan to build Southeast Asia’s largest integrated circuit design park and offer incentives to attract global tech companies and investors is part of its efforts to move beyond backend chip assembly and testing and into high-value, front-end design work. The country is well-positioned to grab further business in the semiconductor sector, as Chinese chip firms diversify outside of China for assembling needs. This announcement comes as Taiwan Semiconductor Manufacturing Co (TSMC) stated that a surge in artificial intelligence (AI) server demand would fuel global semiconductor revenue growth this year at an annual rate of about 10 percent, excluding the memory chip sector.
