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Malaysia Embraces Future with Siemens’ New Semiconductor Strategy

ByYasmeeta Oon

Jun 6, 2024

Malaysia Embraces Future with Siemens’ New Semiconductor Strategy

In a significant move towards establishing Malaysia as a global semiconductor leader, Prime Minister Anwar Ibrahim recently announced the National Semiconductor Strategy (NSS) at Semicon SEA 2024. The strategy, backed by substantial fiscal incentives totaling US$5.3 billion, is designed to transform Malaysia into a crucial hub for semiconductor manufacturing.

The NSS is expected to tap into the rapidly growing sectors such as electric vehicles (EVs), artificial intelligence (AI), and the expansion of data centers, which are increasingly driving semiconductor demand both locally and internationally. Tindaro Danze, President & CEO of Siemens Malaysia, endorsed the NSS, noting its alignment with Siemens’ vision for a sustainable and technologically advanced semiconductor ecosystem in Malaysia.

Danze emphasized the pivotal role Siemens is poised to play in this initiative, stating, “As the only player in the semiconductor industry with solutions across the entire value chain – from research to design and production – Siemens is committed to supporting the NSS and Malaysia’s semiconductor industry more broadly.” Siemens’ extensive involvement in the sector allows it to provide unparalleled expertise and solutions at every stage of semiconductor manufacturing.

Furthermore, Siemens Malaysia is responding to the Prime Minister’s call to develop a skilled workforce by aiming to nurture around 60,000 engineers in the semiconductor field over the next decade. This effort includes collaborations with the Selangor Technical Skills Development Centre (STDCx) and local universities to devise advanced syllabi that enhance the competencies of the existing workforce and prepare new talents for the industry’s challenges.

Sustainability is another critical focus of Siemens, as highlighted in a joint report by Boston Consulting Group (BCG) and SEMI. The report reveals that approximately 65% of manufacturing emissions in the semiconductor industry stem solely from electricity generation, with the overall value chain responsible for 0.3% of global carbon emissions.

Katharina Westrich, Global Head of Electronics, Semiconductors & Simulation at Siemens AG, outlined how Siemens is leveraging its Siemens Xcelerator and other advanced technologies, like digital twin and AI, to optimize energy use and operational efficiency. “Our own plants are equipped with the latest automation and digitalization solutions, showcasing our commitment to sustainability,” Westrich said. Siemens helps companies standardize procedures and harness real-time insights from digital twins, driving operational excellence and supporting their transition into sustainable digital enterprises.

By implementing these comprehensive strategies, Siemens is not only advancing its own operations but is also setting a precedent for the industry to follow, ensuring that semiconductor manufacturing advances in a way that is both innovative and environmentally responsible.

Key Components of the National Semiconductor Strategy:

  • Fiscal Incentives: US$5.3 billion in fiscal incentives to attract and retain semiconductor investments.
  • Workforce Development: Plans to train 60,000 engineers in the semiconductor field over the next decade.
  • Sustainability Focus: Emphasis on reducing carbon emissions through advanced technologies.

Key Features of the National Semiconductor Strategy

Fiscal IncentivesUS$5.3 billion
Workforce DevelopmentTraining for 60,000 engineers over 10 years
SustainabilityFocus on reducing emissions through advanced technologies like digital twin and AI
CollaborationPartnerships with STDCx and local universities
Industry ImpactExpected growth in EVs, AI, and data centers

Siemens’ role in this transformative strategy is multifaceted, encompassing not only technological advancements but also substantial contributions to workforce development and sustainability efforts. Siemens Malaysia is set to spearhead efforts in creating a sustainable and technologically advanced semiconductor ecosystem.

Siemens’ Contributions Include:

  • Full Value Chain Solutions: Siemens offers comprehensive solutions from research to production.
  • Workforce Training: Collaborating with educational institutions to develop advanced syllabi.
  • Sustainability Initiatives: Utilizing Siemens Xcelerator and digital twins for energy optimization.

The NSS is poised to make a significant impact on the semiconductor manufacturing landscape in Malaysia. By integrating fiscal incentives, workforce development, and sustainability initiatives, the strategy aims to position Malaysia as a key player in the global semiconductor market.

Expected Outcomes:

  • Enhanced Global Competitiveness: Malaysia will become a competitive hub for semiconductor manufacturing.
  • Skilled Workforce: A new generation of skilled engineers will drive industry growth.
  • Sustainable Practices: Adoption of sustainable practices will reduce the carbon footprint of semiconductor manufacturing.

The launch of the National Semiconductor Strategy marks a pivotal moment for Malaysia’s semiconductor industry. With substantial support from Siemens and other industry leaders, Malaysia is well on its way to becoming a global leader in semiconductor manufacturing. This comprehensive approach, combining fiscal incentives, workforce development, and sustainability, sets a strong foundation for future growth and innovation.

Prime Minister Anwar Ibrahim’s announcement at Semicon SEA 2024 underscores the government’s commitment to driving this vision forward. As the NSS unfolds, Malaysia is expected to witness significant advancements in technology, sustainability, and economic growth, solidifying its position on the global semiconductor stage.

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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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