Malaysia has always been a key player in the global semiconductor scene, and as we wrap up 2024, the industry is buzzing with activity and optimism. Let’s take a look at where things stand, why it matters, and what’s next!
You might not think about semiconductors every day, but they’re the tiny heroes behind your smartphones, laptops, cars, and more! Malaysia plays a huge role here—about 13% of the world’s semiconductor testing and packaging happens right here in this country (Noor Adhami & Doshi, 2024). That’s a big deal for the global tech supply chain!
Big Moves and Bigger Investments
This year has been all about making bold moves. Back in May, Prime Minister Anwar Ibrahim announced the National Semiconductor Strategy (NSS), a plan so ambitious it aims to attract investments with over RM500 billion (around $107 billion).
The NSS isn’t just about numbers; it’s about taking Malaysia’s semiconductor game to the next level. Think cutting-edge chip design, fancy packaging technologies, and equipment manufacturing. The goal? At least ten local companies earn between $210 million and $1 billion each. To sweeten the deal, the government has thrown in $5.3 billion worth of incentives (Danial Azhar, 2024).
And it’s working! Global giants like Germany’s Infineon Technologies are putting their money where their chips are. Infineon has committed nearly RM25 billion to expand its plant in Kulim, Kedah, solidifying Malaysia’ spot as a hub for power chip production (Yu et al., 2024).
Economic Powerhouse
Semiconductors are like rocket fuel for Malaysia’s economy, contributing a whopping 25% to the Gross Domestic Product (GDP). Even when the global semiconductor market hit a rough patch in 2023 where sales dipped by 8.2%, Malaysia weathered the storm better than most, with only a small drop (MIDA, 2024)!
Looking ahead, things are heating up. The World Semiconductor Trade Statistics predicts a 13.1% rebound in the global market for 2024, and Malaysia is perfectly positioned to ride that wave (World Semiconductor Trade Statistics, 2023).
Challenges on the Horizon
Of course, it’s not all smooth sailing. The semiconductor world is changing fast, with new tech, tougher competition, and supply chain headaches. To stay ahead, Malaysia is doubling down on research, development, and—most importantly—training the next generation of semiconductor talent.
This is where we, ASEM (Advanced Semiconductor Academy of Malaysia, formerly known as AI Nusantara) comes in! ASEM is preparing the next generation of tech talent by bridging the skill gap through offering programs tailored to industry needs such as the ongoing National Semiconductor Excellence Program (NSEP) and Global Semiconductor Exchange Program (GSEP).
What’s Next?
Malaysia’s semiconductor industry isn’t just surviving; it’s THRIVING. With strategic investments, a solid government plan, and a focus on innovation, the country is set to keep punching above its weight in the global semiconductor game.
So, whether you’re a tech enthusiast or just someone who appreciates how your gadget works, there’s a lot to cheer about in Malaysia’s semiconductor story.
Here’s to a bright and chip-tastic 2025!