MALAYSIA, home to companies like DNeX (SilTerra) and XFAB, has the potential to expand its role in advanced packaging and semiconductor manufacturing, backed by its infrastructure and skilled workforce.
“As geopolitical shifts and supply chain diversification drive semiconductor companies to explore new locations, Malaysia is positioning to capture a greater share of the market,” said RHB in the recent Malaysia Sector Update Report.
However, investments in these technologies require patience, often taking 5-10 years to yield returns. Successfully establishing and growing semiconductor fabs requires several key resources and government support mechanisms.
First, a strong base of engineering talent is crucial to sustain advanced manufacturing to achieve good yield and R&D efforts.
Government policies such as subsidies and taxes further enhance investment appeal, by lowering operational costs.
Third, reliable and competitively priced utilities like electricity and water are necessary to support high-energy-consuming fabrication processes.
“Malaysia has emerged as an attractive destination for the semiconductor industry, especially the back-end process, benefiting from a skilled workforce in semiconductor packaging, EMS and some wafer Fabrication,” said RHB.
Home to companies like DNeX (SilTerra) and X-FAB, Malaysia has the potential to expand its role in advanced packaging and semiconductor manufacturing, supported by strong infrastructure and technical expertise.
This expertise is complemented by strong proficiency in English and bilingual capabilities in Chinese, facilitating communication in global operations.
Additionally, Malaysia’s growing role in advanced packaging is further reinforced by the diversification of supply chains amid the US-China trade war, positioning the country as an increasingly attractive destination for semiconductor investment and high tech manufacturing.
As geopolitical shifts and supply chain diversification drive semiconductor companies to explore new locations, Malaysia is positioning itself to capture a greater share of the market. —Feb 18, 2025
Main image: Trade Brains
