On May 28, Malaysia’s Prime Minister Anwar Ibrahim announced the National Semiconductor Strategy (NSS), highlighting Malaysia’s value as a globally competitive, neutral, and non-aligned location for semiconductor production in light of the current geopolitical landscape. The strategy includes an allocation of at least RM25 billion (US$5.2 billion) to bolster Malaysia’s status as a major player in the semiconductor industry.
Led by the Ministry of Investment, Trade, and Industry (MITI), Malaysia’s NSS aims to encourage greater investment in higher-value areas of the supply chain, including integrated circuit design and advanced packaging and manufacturing equipment. Prime Minister Anwar highlighted key targets related to skilling, research and design, local company growth, and investments, including attracting RM500 billion (US$105.95 billion) worth of investments, in addition to establishing targeted incentives from the government, which are expected to soon be announced by MITI. During the first phase of NSS, the government aims to modernize outsourced semiconductor assembly and test (OSAT) to move towards advanced packaging, expand fabrication plants, increase FDI to support capacity in trailing edge chips, and develop local champions in chip design. NSS has been framed as a living document to be updated as needed in order to sustain Malaysia’s position as a major global player in the semiconductor technology industry.
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