Malaysia is now an established outsourced semiconductor assembly and testing services provider in the global supply chain.
PETALING JAYA: The ongoing shift in the global supply semiconductor chain as a result of Sino-US trade tensions can benefit Malaysia’s established semiconductor sector, provided there is support in the form of right policies and incentives to attract the investments flows.
RHB Research, in a research report, stated Malaysia’s strategic location in Asean and its well-developed free trade zones can further attract new semiconductor investments, as major sector players seek to derisk from China-based supply chains.
It added one of Malaysia’s key strengths was its cost competitiveness. Competitive wages for operators and technicians, coupled with low costs for power and water, make it an economically viable hub for semiconductor manufacturing.
Furthermore, the country’s well developed logistics infrastructure – encompassing road, rail, air and sea freight networks – ensures efficient supply chain management and global connectivity.
The scope to grow the sector is thus good.
Malaysia is now an established outsourced semiconductor assembly and testing services provider in the global supply chain through companies like Inari Amertron Bhd
, Malaysian Pacific Industries Bhd, Unisem (M) Bhd and Globetronics Technology Bhd.
It also has a presence in the fabrication space through companies like Dagang Nexchange Bhd (Silterra) and X-FAB Sarawak.
RHB Research added the country’s proximity to Singapore enhanced its liveability and strategic positioning while the city state, which is a global semiconductor hub, provides opportunities for collaboration and talent mobility.
To address the issue of manpower in the tech sector here, the research firm believes efforts should be made to bring back experienced Malaysian semiconductor professionals working abroad by offering them special incentives and make the Malaysia My Second Home programme more attractive for expatriates.
