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THE Government is intensifying efforts to strengthen its domestic semiconductor industry, aiming to reduce reliance on foreign-owned companies while nurturing a new generation of globally competitive local firms under its National Semiconductor Strategy (NSS).
Responding to a question in the Dewan Negara on Wednesday from Senator Mohd Hasbie Muda, Deputy Investment, Trade and Industry (MITI) Minister Liew Chin Tong highlighted the significance of Malaysia’s role in the global semiconductor supply chain, particularly in outsourced semiconductor assembly and testing (OSAT), a segment it has developed over more than five decades.
“The semiconductor industry has a complex supply chain that integrates across various sectors requiring advanced technologies such as data centres, automotive, Internet of Things, artificial intelligence, and other electronic applications,” Liew said.
MITI noted that Malaysia has traditionally depended on foreign firms to drive technological growth, with local players largely serving as vendors.
The NSS aims to reverse this trend by continuing to attract strategic high-technology investments — including in advanced packaging — while also laying the groundwork for local companies to evolve into multinational corporations in their own right.
“This new approach is vital, as there are already Malaysian companies with the potential to become global technology players,” he said.
Under the NSS, the government has set out to develop at least ten Malaysian companies in advanced semiconductor design and packaging with annual revenues exceeding USD1 billion, along with 100 additional high-performing firms earning RM1 billion annually.
MITI, through the Malaysian Investment Development Authority (MIDA), is actively identifying promising local firms across the entire semiconductor value chain — from chemical and materials supply to machinery, wafer fabrication, testing, packaging, and integrated circuit design — to help reinforce and complete the existing ecosystem.
The ministry reported notable progress since the beginning of 2024, including the training of 4,557 engineers and technical professionals, the identification of more than 23,000 potential job opportunities, RM52 billion in confirmed investments (of which RM2.1 billion is domestic and RM49.9 billion foreign), and the establishment of five local integrated circuit design firms.
Describing the NSS as a key policy platform, MITI emphasised its role in sustaining Malaysia’s status as an “indispensable middle power” in the global semiconductor supply chain. - Sept 3, 2025