PETALING JAYA: Penang is positioning itself to deepen ties with Latin America as global semiconductor supply chains rapidly restructure, says Penang Port Commission chairman Datuk Yeoh Soon Hin.
He said both regions can develop a “dual-hub” supply chain by combining their strengths to enhance resilience and competitiveness.
“Amid geopolitical and economic uncertainties, companies are increasingly investing in Malaysia due to its relative stability,” he said at the Latin America–Malaysia Semiconductor and Electronics Industry Opportunities Forum.
Yeoh noted that Malaysia remains a key player in the global outsourced semiconductor assembly and test (OSAT) segment, holding about 13% of the global market in packaging, assembly and testing.
He added that Malaysia’s strategic location, strong logistics infrastructure and supportive policies continue to draw semiconductor investments.
The forum in Penang brought together industry representatives from the United States, Mexico, Costa Rica, Brazil and Colombia, along with the Malaysia Semiconductor Industry Association and international business groups, to explore new cross-regional collaboration.
Describing Penang as the “Silicon Valley of the East”, Yeoh said multinational firms such as Jabil, Bosch, Western Digital and Lam Research are expanding their operations in the state.
He also highlighted the role of logistics players, noting that DHL Express has multiple facilities in Penang and, since 2021, has operated direct cargo flights to Hong Kong, a key semiconductor trading hub.
Yeoh said Latin America is emerging as an important player in the global semiconductor supply chain, driven by US-led “nearshoring” and “friendshoring” strategies.
Mexico is becoming a major nearshoring hub, while Costa Rica has strengths in chip design and testing. Brazil offers a large consumer market, and countries such as Chile and Bolivia are rich in critical minerals for semiconductor manufacturing.
Latin America is moving from being a bystander to an active participant, particularly in OSAT and automotive electronics, he said.
He stressed that Malaysia and Latin America should be viewed as complementary partners, with Penang strong in manufacturing and OSAT, and Latin America offering proximity to end markets.
Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said discussions also highlighted challenges such as logistics costs, policy coordination and talent shortages, and called for stronger government cooperation, trade facilitation and talent development to support long-term growth.
Mexican Ambassador to Malaysia Luis Javier Campuzano Pina reaffirmed Mexico’s commitment to deepening cooperation with Malaysia in sectors including semiconductors, electronics, aerospace, automotive and agriculture, especially with regions like Penang.
