Malaysia Planning to secure $107B to Kickstart their Semiconductor Industry

Malaysia is aiming to secure at least 500 billion ringgit (US$107 billion) in investments for its semiconductor industry, as announced by Prime Minister Anwar Ibrahim on May 28. This move is part of Malaysia's strategy to enhance its position in the global semiconductor supply chain. The country already plays a significant role in the industry, contributing 13 percent to global semiconductor testing and packaging. In recent years, Malaysia has attracted substantial investments from leading companies such as Intel and Infineon.

Prime Minister Anwar specified that the targeted investments would focus on integrated circuit design, advanced packaging, and manufacturing equipment for semiconductor chips. Additionally, Malaysia aims to establish at least ten local companies specializing in design and advanced packaging for semiconductor chips, with each generating revenues between US$210 million and US$1 billion.

To support these ambitious goals, the Malaysian government will allocate US$5.3 billion in fiscal support. However, Prime Minister Anwar did not provide a specific timeline for achieving these targets. This substantial investment and strategic focus are expected to significantly boost Malaysia's capabilities and competitiveness in the semiconductor sector, positioning it as a key player in the global market.