Malaysia To Invest $5.3 Billion For Semiconductor Industry Growth

Malaysia To Invest $5.3 Billion For Semiconductor Industry Growth

On Tuesday, PM Anwar announced that Malaysia aims to attract $100 billion in semiconductor sector investments. This project aims to position the country as a worldwide manufacturing hub. Malaysia accounts for 13% of global semiconductor testing and packaging and has received major investments from industry players like Intel and Infineon.

The intended investments would focus on integrated circuit design, sophisticated packaging, and semiconductor chip manufacturing equipment. Furthermore, Malaysia aims to support the growth of at least ten indigenous design and innovative packaging enterprises, with a sales target of $210 million to $1 billion.

To achieve these ambitious targets, the Malaysian government will provide $5.3 billion in fiscal assistance, with additional specifics to be forthcoming. Anwar emphasised Malaysia’s ability to diversify and advance the value chain into high-end manufacturing and design.

Additionally, Malaysia aims to develop Southeast Asia’s largest integrated circuit design park, offering benefits such as tax reductions, subsidies, and visa exemptions to attract global tech companies and investors. This effort is part of Malaysia’s overall aim to transition from backend assembly to high-value design work.

Chinese chip businesses such as Xfusion and StarFive are growing their presence in Malaysia, and the country stands to benefit from their efforts to diversify assembly needs outside of China.