Malaysia poised to challenge Taiwan in semiconductor manufacturing?
Skill shortages present challenges to Malaysia's growing semiconductor sector
SHAH ALAM – Malaysia is emerging as a key player in the global semiconductor industry, seen as an alternative to the dominant but vulnerable Taiwan Semiconductor Manufacturing Company.
According to media reports, Taiwan's position is susceptible to disruptions from geopolitical tensions and natural disasters.
In 2023, Penang garnered a significant $12.8 billion in foreign direct investment (FDI) from the semiconductor sector, outpacing the total FDI of the previous seven years.
Notably, Intel has announced a $7 billion investment in a new manufacturing facility in Penang, as reported by the World Economic Forum.
Prime Minister Datuk Seri Anwar Ibrahim, in a discussion with the Financial Times, highlighted that advancing the semiconductor industry is a crucial objective for Malaysia.
He praised the efforts to attract high-tech investments like Infineon's new silicon carbide factory in Kulim, Kedah.
These initiatives align with Malaysia’s National Investment Aspirations (NIA) and the New Industrial Master Plan.
However, the industry faces significant hurdles, particularly a shortage of skilled workers, which poses a threat to Malaysia's role in the global semiconductor supply chain, primarily based in Northern Malaysia and Penang.
With major companies from Europe and the United States expanding their operations, Malaysia is positioning itself as a rising market for semiconductors.
What is a semiconductor chip?
A semiconductor chip is a material that sits between a conductor and an insulator, managing the flow of electricity in devices. It's a crucial component in various electronic devices, including computers and solid-state storage.
What are the two basic types of semiconductors: