Semiconductor Industry in Malaysia

reogma|Semiconductor Industry in Malaysia

Malaysia with its strategic location, low-cost opportunities, sophisticated talent pool, favourable government and regulatory support appears to be a viable hub for semiconductor players. A wide range of emerging technologies such as IoT, Big data, connected devices and cars, 5G, AI are steering this industry into a state of progress and transformation.

The future of semiconductor industry in Malaysia will be driven by significant growth rate of 26% particularly in wafer fabrication, packaging and testing sectors. Together, all the factors will drive the industry growth by CAGR 5-9%.

  • Definition / Scope
  • Market Overview
  • Key Metrics
  • Market Risks
  • Market Drivers
  • Market Restraints
  • Industry Challenges
  • Technology Trends
  • Other Key Market Trends
  • Market Size and Forecast
  • Market Outlook
  • Technology Roadmap
  • Competitive Landscape
  • Competitive Factors
  • Key Market Players
  • Strategic Conclusion
  • References

Definition / Scope

For several decades, the semiconductors have become the backbone of the technological progress. Semiconductors are in the heart of every innovation such as the internet of things, PCs, tablets, laptops, autonomous vehicles, drones, wearables, robotics, medical, data centers, industrial production, additive manufacturing and smartphones.

A semiconductor is like the brain which powers many of the digital devices that we use today. To put simply, semiconductors serve as a translator between the physical world and the digital world, without which many applications and products would not function.

Today, virtual connectivity is increasing exponentially induced by the covid pandemic leading to the increase in demand for semiconductors and electronics. However, the growth trajectory has its natural limits combined with changing demand for semiconductors is creating a need for major transformation in the industry. Today’s semiconductor players both fabless and integrated, needs to evolve their business models and strategies to cater to the constantly changing technologies and needs of the customers.

Malaysia, strategically located at the center of the ASEAN region has a well-developed infrastructure that supports growth of the semiconductor industry. Malaysia borders Brunei, Indonesia, and Thailand by land and Philippines, Singapore, and Vietnam by sea.

Besides this, Malaysia also has favorable business policies such as protection of intellectual property and equity ownership and research facilities/incubators that fosters the development of this industry. The country has also set up Malaysia Semiconductor Industry Association (MSIA) that aims to assist government's drive to support Research and Development (R&D) and design and fabrication of semiconductors.


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Malaysia with its strategic location, low-cost opportunities, sophisticated talent pool, favourable government and regulatory support appears to be a viable hub for semiconductor players. A wide range of emerging technologies such as IoT, Big data, connected devices and cars, 5G, AI are steering this industry into a state of progress […]
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