Malaysia intensifies capabilities in semiconductor industry, says Tengku Zafrul

KUALA LUMPUR: Malaysia is intensifying its capabilities in the semiconductor industry and boosting its position in the supply chain by focusing on the ‘front-end’ segment, including fabrication.

According to Bernama, sharing these efforts, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said this is crucial as Malaysia has a competitive edge in the sector, being a key player in the electrical and electronics industry for over five decades.

He mentioned that semiconductor exports currently account for 40 percent of the country’s total exports, while its contribution to the global market reaches six percent.

“We have this advantage due to the track record and ecosystem created by local and multinational companies.

“The presence of these multinational companies also creates various opportunities for local firms to grow,” he said.

Speaking at a Bloomberg forum session titled ‘Spotlight on ASEAN Business: Charting New Frontiers,’ Tengku Zafrul said Malaysia also aims to further enhance its position in the ‘front-end’ segment of the sector.

“Companies are also moving in this direction. They will come to Malaysia, and this can be seen through the large-scale investments,” he said.

At the same time, Tengku Zafrul noted that there are many opportunities for ASEAN members to collaborate in boosting the semiconductor industry, including creating a regional ecosystem.

He also cited how companies in Singapore are expanding their operations to Malaysia, with most of the ‘front-end’ processes carried out in Singapore, while mid to ‘back-end’ operations, such as packaging, are focused in Malaysia.

Furthermore, ASEAN, according to Tengku Zafrul, has other advantages that can drive the growth of the semiconductor industry in the region, such as green energy.

“This sector requires a lot of energy, and companies want green energy. Everyone wants to meet their sustainability objectives and agendas.

“Malaysia is investing in green energy to support this industry, and I am confident that other ASEAN member countries will do the same,” he said.