Malaysia sets up chip design hub to ‘drive demand’ for semiconductor industry
Malaysia has established a chip design centre in Selangor state to boost its semiconductor industry and attract foreign investment.
The Southeast Asian country is looking to increase its chip-design capabilities and move away from testing and packaging, traditionally considered less complex and of lower value.
“Interest in data centres will continue to drive demand for semiconductors,” Economy Minister Rafizi Ramli said on Tuesday. “At some point, we want to stop using chips designed in other countries. We want to see more data centres in Malaysia using chips designed by Malaysians.”
Partners in the Malaysia Semiconductor IC Design Park include software maker Cadence Design Systems Pvt. Ltd. and semiconductor maker Arm Holdings Pvt. Ltd. The integrated circuit design center is located in Puchong city, near the capital, Kuala Lumpur.
Malaysia is home to numerous semiconductor packaging facilities from Intel, Globalfoundries and Infineon Technologies, making it a key regional hub in the global supply chain and attracting Chinese semiconductor companies looking for a location with easier access to foreign capital and technology.
The Southeast Asian nation earlier this year pledged to spend at least 25 billion ringgit ($5.6 billion) to support its chip industry, seeking to expand its role as tensions between the United States and China rattle global supply chains.
Malaysia’s semiconductor industry aims to double its exports to 1.2 trillion ringgit (US$270 billion) by 2030, consolidating its position as the world’s sixth-largest semiconductor exporter.
