Malaysia targets at least RM500b investment for the National Semiconductor Strategy

by VEISHNAWI NEHRU

THE government aims to attract at least RM500 billion in investments for Phase 1 of the National Semiconductor Strategy (NSS), said  Prime Minister Datuk Seri Anwar Ibrahim (picture).

In the keynote address at the launch of Semicon Southeast Asia 2024 today, Anwar said the investments were among the five targets from NSS that was launched in April, this year.

Phase 1 of NSS would involve domestic direct investment (DDI) focusing on Integrated Circuit (IC) design, advanced packaging and manufacturing equipment and foreign direct investment (FDI) focusing on wafer fabs and manufacturing equipment.

“This includes prioritising Domestic Direct Investment (DDI) in IC Design, Advanced Packaging and Manufacturing Equipment and Foreign Direct Investment (FDI) in Wafer Fabs and Manufacturing Equipment.

“As the NSS progresses into phase two, the focus will shift towards nurturing the growth of Malaysian companies in Design and Advanced Packaging with revenues between USD210 million to to USD1 billion (RM1 billion to RM4.7 billion),” he told the audience at the launch today.

Anwar said NSS would also aim to establish a minimum of 10 Malaysian companies with significant revenues, contributing to higher wages for Malaysian workers.

“An integral aspect of the NSS is its vision to develop Malaysia as a global R&D hub for semiconductors.

“This initiative will involve collaboration with world-class universities and corporate R&D facilities to drive innovation in the semiconductor sector,” he said.

Commenting further, Anwar added that in recognition of the need to enhance the capabilities of the Malaysian workforce, the NSS aims to train and upskill 60,000 high-skilled Malaysian engineers.

“To operationalise the NSS and provide targeted incentives, the plans include allocating at least USD5.3 billion (RM25 billion) in fiscal support.

“Detailed information regarding these incentives will be announced by the Investment, Trade and Industry Ministry (MITI),” he said.

Moreover, he also added that the government aims to achieve 40% of Malaysia’s primary energy mix from renewable sources by 2035.

“This initiative aims to reduce carbon dioxide emissions by 10 million tonnes annually and achieve 100% renewable energy by 2050.

“The government supports exploring new technologies like green hydrogen, nuclear technology and large-scale energy storage to reduce dependence on fossil fuels and meet the 2016 Paris Accords’ targets,” he said.

The Semicon SEA 2024, held at MITEC Kuala Lumpur from today until May 30, aims to boost Malaysia’s semiconductor industry and regional manufacturing hub status.

With nearly 500 exhibitor companies and over 1,000 exhibition kiosks, the event anticipates attracting a significant number of attendees to propel the nation’s global value chain. — TMR