KUALA LUMPUR – The federal government will be investing RM25 billion in fiscal support to operationalise the National Semiconductor Strategy (NSS) while attracting at least RM500 billion in investment during Phase 1, said Prime Minister Datuk Seri Anwar Ibrahim.
While the strategy evolves as needed, Anwar reiterated the government’s commitment to ensure Malaysia becomes a major global player in technology, powered by the semiconductor industry.
The multi-billion ringgit strategy is designed to foster collaboration with companies on the global stage, with an emphasis on the Southeast Asian region.
Speaking at Semicon Southeast Asia 2024 at the Malaysia International Trade and Exhibition Centre here, Anwar said the NSS will adopt a three-phase plan to grow the existing semiconductor fabrication plants and encourage foreign direct investment, particularly from purchasers linked to tech giants Apple, Huawei and Lenovo.
In Phase 1, Malaysia has a plan to attract at least RM500 billion through domestic direct investment focusing on integrated circuit design, advanced packaging and manufacturing equipment, while foreign direct investment focuses on wafer fabrication and manufacturing equipment.
Advanced semiconductor packaging involves manufacturing processes that combine multiple chips into a single electronic package.
Meanwhile, wafer fabrication involves repeated processes to produce complete electrical circuits on semiconductor wafers.
Through the NSS, he said the government aims to also establish at least 10 Malaysian companies in design and advanced packaging with revenues between RM1 billion and RM 4.7 billion and at least 100 semiconductor-related companies with revenues close to RM1 billion.
Anwar, who is also finance minister, acknowledged that it will be an uphill battle for Malaysia to reach the frontiers of chip technology given the complexity and cost, but will look towards focusing on other areas of the value chain.
“For instance, electric vehicles (EVs) contain more than 3,000 chips, two to five times that of ICE (internal combustion engine) vehicles.
“With the growth of the global EV market, Malaysia could become the key hub to supply power chips to EV cars.”
Ultimately, Anwar said the government hopes that the NSS will become a method for Malaysia to advance and democratise technology, offering the nation a neutral and non-aligned location for semiconductor production. – May 28, 2024