KUALA LUMPUR – Semiconductor and electronics expected to see lower costs and supply chain resiliency in the long term, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said.
Malaysia had recently signed the US-Malaysia Memorandum of Cooperation (MOC) on the Semiconductor Supply Chain Resilience which Wong stated that the move is a positive development for the country’s semiconductor and electrical and electronics (E&E) sector.
He said that the MOC and joining the Indo-Pacific Economic Framework for Prosperity (IPEF) will further strengthen Malaysia’s status as one of the critical international semiconductor hubs.
In a recent statement, MSIA stated that the industry is undergoing a time of rapid growth with emerging technologies like the Internet of Things (IoT), artificial intelligence, smart factories, autonomous vehicles and other digital transformations.
According to MSIA, semiconductor firms like Intel, Samsung, Taiwan Semiconductor Manufacturing Company (TSMC), China, the US, and Europe have previously announced investments over the value of US$550 billion in the past year. The investments go towards fabrication plants, created to meet rising demands for semiconductors worldwide.
“Malaysian companies are developing and boosting its capacity to address the shortages of semiconductor chips. Additionally, Malaysia is also attracting fresh investments to strengthen its supply chain.
“A more resilient and flexible supply chain would allow for the industry to better handle market volatility,” the statement added.
MSIA also stated that the industry must chart a course towards a future in which sustainable growth is achievable through resilience and an open, interconnected world.
“This is crucial as the semiconductor and E&E industry has the most complicated and geographically dispersed value chain worldwide,” it continued.
Malaysia joined 12 other starting countries to be part of the IPEF recently, namely Australia, Brunei, Indonesia, Thailand, Vietnam, India, Japan, South Korea, New Zealand, the Philippines, Singapore and the US. Together, the nations represent 40% of the world’s total gross domestic product (GDP).
The country previously recorded RM148 billion worth of approved investments in 2021, this was 9.5 times more than the amount of RM15.6 billion in the previous year.
The statement reported that the investment trends are likely to continue following the recent US trade mission led by Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali.
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