Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim said the government plans to invest atleast US$106.5 billion (S$143.5 billion) for progressing integrated circuit design, advanced packaging and manufacturing equipment for semiconductor chips.
The country aims to establish at least 10 local companies in design and advanced packaging, and at least 100 semiconductor-related companies to create job opportunities.
Malaysian government has allocated S$7 billion fiscal support to boost the National Semiconductor Strategy (NSS), a comprehensive plan aimed to attract investment to improve the semiconductor ecosystem.
Anwar said in a tech event that NSS is structured in three phases to foster collaboration with companies across ASEAN, Asia, and the global stage.
“In this phase, we will leverage our industry’s existing capacity and capabilities to support the modernisation of outsourced semiconductor assembly and test (OSAT) with moves towards advanced packaging; grow existing fabs in Malaysia and pursue FDI on expanding capacity in trailing edge chips, particularly power chips; as well as develop local chip design champions,” he said.
He added that more leading advanced chip manufacturers will be attracted once after the first phase is implemented.
“This is where our local design champions can be easily integrated into the ecosystem of these advanced fab companies,” Anwar said.
He added that the government also envisions Malaysia as a global hub for semiconductor research and development (R&D), fostering an ecosystem that integrates world-renowned universities, corporate R&D facilities, and global centres of excellence.
Malaysia had recently in April unveiled plans to build Southeast Asia’s largest integrated circuit design park to offer incentives including tax breaks, subsidies and visa exemption fees to attract global investors.
Anwar said the initiative is a part of Malaysia’s efforts to move beyond backend chip assembly and testing into high-value front-end design work.
As a latest update, Taiwan’s major global semiconductor packaging and testing company, Siliconware Precision Industries (SPIL), commemorated the groundbreaking ceremony for its new plant to be built in Malaysia.
This state-of-the-art 8-hectare facility represents a substantial investment of S$7 billion. The plant is aimed to introduce advanced packaging and testing technologies such as wafer bumping, and offer comprehensive solutions including wafer bumping, wafer-level chip packaging, flip chip packaging and testing.
This initiative is expected to significantly reduce production cycles, enhancing efficiency and competitiveness in the semiconductor industry.