Malaysia has established a chip-design hub in Selangor state to enhance its semiconductor industry and attract foreign investments. This initiative aims to upgrade Malaysia’s capabilities from traditional testing and packing, considered less complex and of lower value, to more advanced chip design.
Economy Minister Rafizi Ramli highlighted on August 6 that the growing interest in data centers will drive semiconductor demand. He stated, “At some point, we want to move away from using chips that are designed elsewhere. We want to see more data centers in Malaysia using chips designed by Malaysians.”
The Malaysia Semiconductor IC Design Park, located in Puchong near Kuala Lumpur, has partnered with software maker Cadence Design Systems Inc and chip company Arm Holdings Plc. This hub aims to foster a local chip-design ecosystem.
Malaysia already hosts several chip packaging facilities for major companies like Intel Corp, GlobalFoundries Inc, and Infineon Technologies AG, solidifying its role as a key regional player in the global supply chain. Additionally, it has attracted Chinese chip firms seeking easier access to foreign capital and technologies.
Earlier this year, Malaysia committed at least RM25 billion to support its semiconductor industry, aiming to increase its influence as global supply chains are restructured due to US-China tensions. The nation’s semiconductor industry targets to double its exports to RM1.2 trillion by 2030, aiming to solidify its position as the sixth-largest chip exporter globally.
Featured Image courtesy of Reuters
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