Malaysia’s Manufacturing Capability Attracts Investment from Major Chipmakers

Malaysia emerged as an attractive hotspot for semiconductor companies alongside Japan and India as they aimed to settle major chip hubs in the Southeast Asian country amid chip tensions between the US and China.

Malaysia was known for its experience in the ‘back end’ of the semiconductor manufacturing process, as the country held 13% of the global market for chip packaging, assembly, and testing, according to the data from the Malaysian Investment Development Authority reported by CNBC.

Semiconductor firms across the world, such as Intel, GlobalFoundries, Infineon, and Neways, had already or aimed to invest in Malaysia for various potential of the country, for example, the diverse talent pool, well-established infrastructure, and robust supply chain.

Meanwhile, Zafrul Aziz, Malaysia’s investment, trade and industry minister, told CNBC in January that Malaysia also aimed to focus on the ‘front end’ of the chip manufacturing process, involving wafer fabrication and photolithography, as well, strengthening its capability alongside the strong ‘back end’.