Malaysia aims for $107 billion investment in semiconductor industry

According to Prime Minister Anwar Ibrahim, Malaysia aims to attract a minimum of 500 billion ringgit ($107 billion) in investments for its semiconductor industry. With Malaysia already accounting for 13% of global testing and packaging in the semiconductor sector, the country seeks to solidify its position as a global manufacturing hub. In recent years, it has successfully attracted multibillion-dollar investments from industry giants like Intel and Infineon.

Anwar highlighted that the targeted investment will focus on areas such as integrated circuit design, advanced packaging, and manufacturing equipment for semiconductor chips. Additionally, Malaysia aims to establish at least ten local companies specialising in semiconductor chip design and advanced packaging, with projected revenues ranging from $210 million to $1 billion. To support these ambitious goals, Malaysia plans to allocate $5.3 billion in fiscal support, with further details expected to be announced later.

The Prime Minister emphasised Malaysia’s capacity to diversify and ascend the value chain, emphasising a shift towards high-end manufacturing, semiconductor design, and advanced packaging. Although Anwar still needs to provide a specific timeline for achieving these targets, Malaysia has already begun taking concrete steps to bolster its semiconductor sector. Initiatives include plans to build Southeast Asia’s largest integrated circuit design park, offering incentives such as tax breaks and subsidies to attract global tech companies and investors. These efforts signify Malaysia’s strategic move towards high-value, front-end design work beyond traditional backend chip assembly and testing.