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Meeting growing demand for semiconductors in Southeast Asia

Few sectors in the intricate landscape of global industries hold as much promise and significance as the semiconductor industry.

With technological advancements propelling the world towards innovation at an unprecedented pace, semiconductors have emerged as the backbone of modern technology, driving everything from smartphones to smart cities.

As the demand for electronic devices continues to surge, the semiconductor industry stands poised to become a trillion-dollar juggernaut in the coming years.

Southeast Asia has established itself as a crucial hub for semiconductor manufacturing. Figures from Statista showed that revenue in the semiconductor market is projected to reach more than US$100 billion in 2024, with an annual growth rate (CAGR 2024-2027) of 8.84 per cent, resulting in a market volume of US$130 billion by 2027.

With a combination of strategic location, a skilled workforce, and supportive government policies, Southeast Asian countries have become prime destinations for semiconductor giants looking to expand their production capacities.

Among these nations, Malaysia stands out as a leader in semiconductor excellence. With its robust infrastructure, business-friendly environment, and proactive government initiatives, Malaysia has attracted significant investments from leading semiconductor companies.

The country offers a compelling proposition for semiconductor manufacturers seeking to establish a strong presence in the region. Its strategic location provides easy access to key markets, facilitating efficient supply chain management, and logistics.

Furthermore, Malaysia’s well-developed infrastructure, including state-of-the-art manufacturing facilities and reliable transportation networks, ensures seamless operations for semiconductor companies.

Malaysia’s commitment to driving technological innovation, and research and development (R&D), has positioned itself as a centre for cutting-edge semiconductor technologies.

Collaborations between industry players, academic institutions, and government agencies have fostered a culture of innovation, leading to the development of advanced semiconductor solutions that address the evolving needs of the market.

In a panel discussion at the KL20 Summit 2024 held earlier this week, Blue Chip Venture Capital co-founder and chairman, Datuk Lai Pin Yong, said Malaysia “has the talent, and the right location”.

“What we need, is the execution. We are doing well so far, and we need to continue this momentum, along with supporting the local industry,” Lai added.

As the demand for semiconductors continues to soar, fuelled by emerging technologies such as 5G, artificial intelligence (AI), and the Internet of Things (IoT), Malaysia is well-equipped to meet the challenges and opportunities that lie ahead.

The government is embarking on initiatives to create more skilled workers and to create a robust ecosystem. This is, among others, to capitalise on the growing demand for semiconductor products, driving economic growth and prosperity for years to come.

By leveraging its strengths in manufacturing, innovation, and collaboration, Malaysia is poised to shape the future of the semiconductor industry and cement its position as a global leader in technology and innovation.