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A FRAMEWORK outlining clear directions to foster the growth of 110 local semiconductor companies, focusing on high-value activities such as integrated circuit (IC) design, advanced packaging, and advanced manufacturing equipment took form today after Prime Minister, Datuk Seri Anwar Ibrahim, chaired the first National Investment Council (MPN) meeting of the year, where he approved the implementation of the National Semiconductor Strategy (NSS).
In a statement released by the Ministry of Investment, Trade and Industry MITI today, the ministry said the initiative includes 10 local semiconductor companies, each projected to generate annual revenues ranging from RM1 billion to RM4.7 billion, while supporting the establishment of 100 additional companies with an expected revenue of around RM1 billion each annually.
Launched on May 28, 2024, the NSS aims to strengthen Malaysia’s position in the global semiconductor supply chain.
It serves as a strategic move to boost value-added contributions from the manufacturing sector to Malaysia’s GDP growth, alongside increasing the availability of skilled talent and raising the median wage in the manufacturing industry, as outlined in the New Industrial Master Plan 2030 (NIMP2030).
The initiative signals a strategic shift from a "Made in Malaysia" manufacturing approach to a "Made by Malaysia" technology-driven model, expanding the focus beyond manufacturing to include the development of Malaysia’s research and development (R&D) industry and technological sovereignty.
This aligns with the MADANI Economic Vision, which seeks to enhance local industries' ability to tap into global markets while improving the production capacity of high-value electrical and electronics (E&E) goods and building skilled talent, ultimately raising the income levels of Malaysia’s workforce.
To ensure effective implementation and tangible results, this policy will adopt a whole-of-government approach. The Ministry of Investment, Trade, and Industry (MITI) will collaborate closely with other ministries such as the Ministry of Economy, Ministry of Foreign Affairs, Ministry of Science, Technology, and Innovation, Ministry of Digital, Ministry of Natural Resources and Environment, and the Ministry of Higher Education.
In addition, the MPN has approved semiconductor diplomacy as a key pillar of the NSS. This strategy aims to enhance synergistic collaborations with international partners and ASEAN countries to ensure a sustainable and resilient supply chain for both domestic and global semiconductor players. MITI, in cooperation with the Ministry of Foreign Affairs, will foster closer partnerships in semiconductor diplomacy and other related strategic initiatives, MITI said. - February 18, 2025
