Malaysia builds a chip manufacturing hub and allocates US$5.3 billion to cultivate talents and develop local enterprises

2024/06/19

United News Network
May 29, 2024
Author World Daily/Compiled by Wu Mengzhen, Liu Zhongyong/Comprehensive 28th

The Malaysian government announced the National Semiconductor Strategy on the 28th, seeking to attract hundreds of billions of domestic and foreign funds to invest in the domestic semiconductor industry, and strive to become a global chip manufacturing center.

According to Reuters and Nikkei reports, Malaysian Prime Minister Anwar said at the Southeast Asia International Semiconductor Exhibition on the 28th that the government aims to attract at least 500 billion Malaysian dollars (1,070 billion) through domestic direct investment (DDI) and foreign direct investment (FDI). billion) to assist the domestic semiconductor industry in developing chip design, advanced packaging and equipment manufacturing technologies.

Under this strategy, the Malaysian government will allocate at least 25 billion Malaysian dollars (approximately US$5.33 billion) to cultivate talents and develop local enterprises in the next five to ten years. Funding will come from sovereign wealth funds such as Khazanah Nasional.

Anwar said that the government expects to establish at least ten local companies with chip design and advanced packaging as their main businesses, with annual revenue of US$210 million to US$1 billion.

In terms of talent cultivation, the government aims to train 60,000 manpower in different fields in the chip industry, including design, packaging and testing. Collaborations with local colleges, universities and businesses are expected.

Anwar said, "Our vision is to create an ecosystem driven by dynamic local companies and world-class talent, while partnering with international businesses to compete on the regional and global stages based on innovation and creativity."

The Malaysian Investment Development Authority stated that Malaysia began investing in the semiconductor industry more than 50 years ago and now supplies approximately 13% of the world's chip packaging, assembly and testing services. Now that tensions between the United States and China are heating up, Malaysia is positioning itself as a "neutral" manufacturing center as global companies try to diversify their supply chains.

Anwar said, "For the semiconductor industry, Malaysia is the most neutral field that does not favor any party. We hope to help create a safer and more resilient global supply chain."

In recent years, many global chip manufacturers have entered Malaysia. At the end of 2021, Intel announced that it would spend more than US$7 billion to build a chip packaging and testing plant, with production expected to begin this year. In August last year, Germany's Infineon also announced that it would invest 5 billion euros in the next five years to build the world's largest 200mm silicon carbide wafer fab locally.

Malaysia has recently been actively cultivating domestic high-tech manufacturing industries. Anwar announced in April that the government plans to build the largest IC design park in Southeast Asia and will provide incentives such as tax exemptions, subsidies, and visa fee exemptions to attract international technology companies and investors. In addition, the region's largest chip design center will also be built in Selangor, near the capital.

According to Nikkan Kogyo Shimbun, citing people familiar with the matter, Micron Technology plans to build a new factory to produce DRAM chips in Hiroshima Prefecture, Japan. According to reports, the total investment is estimated to be between 600 billion and 800 billion yen (approximately US$5.1 billion). The new factory will start construction in early 2026 and install extreme ultraviolet (EUV) lithography equipment, and will be put into operation by the end of 2027 at the earliest.

Related links: https://udn.com/news/story/6811/7995769

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