MALAYSIA has spent decades establishing itself as a trusted manufacturing base for the world’s semiconductor giants.
It must now leverage that expertise and develop capabilities of its own – from homegrown technologies and intellectual property to companies capable of competing on the international stage, said Penang Chief Minister Chow Kon Yeow.
The shift from “Made in Malaysia” to “Made by Malaysia” will be crucial to sustaining the industry’s growth and moving the country up the value chain in the global market, he said.
He highlighted this during the Malaysia Semiconductor Industry Association’s (MSIA) fifth anniversary and Merdeka celebration dinner in Penang.
Chow said the industry was in an unprecedented super cycle, with artificial intelligence, supply chain shifts and geopolitical developments rapidly reshaping the landscape.
This has placed greater emphasis on advanced packaging, chip design, semiconductor equipment, research and development (R&D) and digitally enabled manufacturing.
“We want Malaysian engineers to design new technologies and Malaysian companies to grow into regional and international players,” he said.
To achieve this, he said there needed to be heightened collaboration among industry, government and academia, improved access to financing and a stronger focus on research and development and commercialisation.
“We need all parts of the ecosystem working together.
“But to raise the ceiling, we must also raise the floor.
“Higher-value investments should create higher-value jobs. Higher productivity should lead to better wages. And stronger Malaysian companies should create better opportunities for Malaysians,” Chow added.
MSIA president Datuk Seri Wong Siew Hai said the country was now the sixth largest semiconductor exporter in the world, claiming about 7% of the global share.
About 13% of global assembly, testing and packaging capacity is also located in Penang.
“Our electrical and electronics (E&E) exports reached more than RM711bil in 2025,” said Wong.
“In the first half of this year, these exports surged 42.5% year-on-year to RM467.95bil.
“The sector also accounts for 48.2% of our nation’s total exports.”
Wong said MSIA had come a long way since it was established in 2021, to provide a unified voice for all stakeholders.
He said from just 68 members then, it has grown to 378 today.
More importantly, he said, was the global network it has built, which includes working relationships with 22 embassies.
“Over five decades, we have built capabilities, developed talent and created a strong ecosystem of multinational and local companies.
“Today, we’re building something even bigger – the capabilities to create the technologies of tomorrow,” Wong said.
Science, Technology and Innovation (Mosti) Minister Datuk Chang Lih Kang said a higher value ecosystem would ultimately translate into better opportunities for Malaysian engineers, researchers, technologists and entrepreneurs.
He pointed to Mosti initiatives such as the Malaysia Science Endowment, which supports local companies in accelerating innovation in semiconductor-related areas, as key.
“The objective is to help build local technological capabilities that can eventually be commercialised, scaled and integrated into the global supply chain,” Chang explained.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the Federal Government’s efforts to promote Malaysia to overseas investors continued to pay off.
The country attracted record investment figures from 2023 to 2025, with some RM1.14 trillion secured across various sectors, he said.
“For this year, as of June, we’ve successfully attracted RM9.19bil in approved investments for the semiconductor industry alone.”
The dinner also featured a cake-cutting ceremony, recognition of members’ achievements, a kebaya fashion show, a live band performance and an appearance by an AI-powered robot and robotic canine.
