Looking to the future: Jagdeep (left) with Wong (second from left) looking at a robot in the Automex exhibition at Setia Spice Convention Centre. — LIM BENG TATT/The Star
GEORGE TOWN: Malaysia’s semiconductor industry must evolve from being the “factory of the world” to becoming the “brain of innovation” – a nation that not only builds technology but creates it, says the Malaysia Semiconductor Industry Association (MSIA).
MSIA president Datuk Seri Wong Siew Hai said semiconductors have become the new oil – powering industries from healthcare to mobility, artificial intelligence (AI) and smart manufacturing.
“The world is changing fast. To remain competitive, Malaysia must evolve in wafer fabrication, advanced packaging, automation, AI and IC design,” he said in his keynote address at the inaugural Silicon Malaysia Conference 2025 (SMC 2025) at Setia Spice Convention Centre yesterday.
Wong said the country’s manufacturing strength was recognised globally, but the next frontier was innovation and design.
Themed “Made by Malaysia”, the conference saw leaders, innovators and policymakers getting together to chart the nation’s path in the semiconductor ecosystem.
Wong said MSIA had focused on four pillars – collaboration, ecosystem development, talent and policy alignment – to strengthen Malaysia’s position in the global value chain.
Among the initiatives were Matec (Malaysia Advanced Technology Equipment Cluster) to enhance partnerships between multinationals and local firms, Main (Malaysia AI Nexus) to drive AI development and Aurum – a network to elevate women’s participation in the sector.
He said MSIA had also led missions to the Netherlands, China and the United Kingdom to foster collaboration in advanced packaging, innovation and skills exchange, while signing memoranda of understanding with Asean and Brazilian associations to expand cooperation and talent mobility.
Wong also said Malaysia should emulate the Brainport of Eindhoven in the Netherlands – a world-class ecosystem that integrates innovation, education and entrepreneurship – by developing a regional brainport here, focused on semiconductor design, advanced packaging, equipment and AI.
He outlined three key enablers – global-local collaboration, talent development through “brain circulation” which lets Malaysians gain overseas experience and return stronger, and innovation infrastructure, which advocates digital connectivity.
“We want Malaysia to be the global semiconductor network’s manufacturing hub and innovation centre.”
Wong urged all stakeholders to move from cost management to value creation, strengthen government-industry-academia collaboration and build local champions capable of competing globally.
Informa Markets Malaysia country general manager Gerard Leeuwenburgh said Penang was the ideal venue as the cradle of Malaysia’s electrical and electronics industry and a high-tech manufacturing hub.
“By co-locating SMC 2025 with Automex Penang, we’ve created a platform where technology meets talent, ideas meet execution and partnerships take shape,” he said.
He said Informa Markets was proud to partner with MSIA to link Malaysian expertise with global investors and innovators, which will strengthen the country’s position in the regional semiconductor and automation ecosystem.
Opening the conference, Penang Deputy Chief Minister II Jagdeep Singh Deo said the state was expanding industrial capacity aggressively to meet growing investor interest in the semiconductor and automation sectors.
He said Penang’s industrial landscape was nearing saturation due to strong demand from local and global players but stressed that the state was already preparing “space for the future”.
Jagdeep said that two phases of the Batu Kawan Industrial Park (PKIP 1 and 2) are currently operational, with a third phase in progress. Additionally, he noted that the North Seberang Perai Industrial Park, which is a seven-phase development, has had its first two phases initiated.
“These are part of our efforts to ensure Penang has sufficient industrial space to cater for companies that are already here and those planning to expand or invest,” he said.
Jagdeep also said that the Automex Penang 2025 exhibition, held alongside the conference, featured 80 booths showcasing automation, robotics and manufacturing technologies, reflecting Penang’s growing reputation as a global innovation hub.
“This kind of conference and exhibition is vital. It shows Penang is ready to support the industries of the future.
“We’re not standing still. We’re moving quickly and decisively to ensure Penang remains the preferred destination for high-tech investment,” he said.
