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Siemens says Malaysia is well positioned to meet rising semiconductor market demand

ByYasmeeta Oon

May 26, 2024
Siemens says Malaysia is well positioned to meet rising semiconductor market demand

Siemens says Malaysia is well positioned to meet rising semiconductor market demand

KUALA LUMPUR: Malaysia is poised to capitalize on the burgeoning demand in the semiconductor market, according to Siemens Malaysia Sdn Bhd, a leading engineering consultancy. The company’s president and chief executive officer, Tindaro Danze, emphasized Malaysia’s potential to not only meet the increasing demand but also to set a benchmark in sustainability within the semiconductor industry, particularly in wafer fabrication and integrated circuit (IC) design.

The Asia-Pacific semiconductor market is on track for double-digit growth in 2024, driven by rising global demand. Malaysia, with its robust manufacturing capabilities and strategic location, is well-positioned to fulfill these increasing orders. However, Danze cautioned against complacency, warning that failing to innovate could result in Malaysia losing its competitive edge to other emerging players in the region.

In 2023, Malaysia captured 13% of the global manufacturing testing market share and exported nearly RM580 billion worth of semiconductor products. This significant contribution underscores the country’s pivotal role in the global semiconductor supply chain.

Danze highlighted the growing emphasis on sustainability and circularity in business practices worldwide, stressing that semiconductor manufacturers must adopt similar approaches. He pointed out that modern machines used in packaging, testing, foundries, and IC plants are now being designed using mechatronic concept designer platforms integrated with AI-powered, physics-based digital twins.

These advanced systems allow for the virtual operation and stress-testing of machinery, offering low-risk, cost-effective means to predict performance, optimize operations, and implement improvements without the need for physical prototypes. This innovation significantly reduces waste and resource consumption, making the manufacturing process more efficient and sustainable.

Key Statistics of Malaysia’s Semiconductor Industry (2023)
Global Manufacturing Testing Share13%
Semiconductor Product ExportsRM580 billion
Projected Asia-Pacific Growth (2024)Double-digit

Danze also emphasized the need for Malaysia to enhance its national water infrastructure, a crucial yet often overlooked utility. Upgrading water systems is vital not only for public use but also for high-value-added manufacturing sectors, including the semiconductor industry, data center cooling, and medical technology.

Integrating next-generation technologies such as AI and low-power sensors into physical water infrastructure can significantly reduce pipe leaks by up to 50%. These advanced systems are sensitive enough to detect leaks as small as 0.5 liters per second across extensive water pipelines, ensuring efficient water usage and conservation.

  • Enhance National Water Infrastructure: Upgrade and integrate advanced technologies to serve public and industrial needs.
  • Adopt Sustainable Manufacturing Practices: Use AI-powered digital twins to optimize machinery design and operations.
  • Stay Competitive: Innovate continuously to maintain Malaysia’s edge in the semiconductor market.

As Malaysia solidifies its position as a global semiconductor hub, the integration of AI-enabled technologies presents new opportunities for growth and innovation. Danze stressed that the incorporation of these cutting-edge technologies not only enhances operational efficiency but also paves the way for sustainable and responsible manufacturing practices.

By leveraging AI, Malaysian semiconductor manufacturers can achieve greater precision in operations, reduce costs, and minimize environmental impact. This approach aligns with the global shift towards sustainability and positions Malaysia as a leader in the semiconductor industry’s future.

Malaysia’s strategic efforts in the semiconductor market, coupled with a strong focus on sustainability and advanced technologies, are set to drive significant growth and innovation. With continued investment in infrastructure and a commitment to sustainable practices, Malaysia can maintain its competitive edge and lead by example in the global semiconductor industry.

By staying at the forefront of technological advancements and prioritizing environmental responsibility, Malaysia is well-equipped to meet the rising demand and set new standards in the semiconductor market.

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Featured Image courtesy of DALL-E by ChatGPT

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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