The East Asia financial crisis which was brought out by the US 2008 housing financial crisis, and while Vietnam and Indonesia both expanded manufacturing capabilities rapidly in the 1970s and 80s and 90s, some time around 2010-11 Malaysia stopped moving up the global technology value chain.
Malaysia has been stagnating ever since for the last 10 years or so. Malaysia chip makers / testing industry remains relatively entrenched, for the near future.
But based on trends we are seeing in worldwide electronics manufacturer operating input costs when equipment manufacturers are paying fees sourcing contract EMS services, and looking further into the future into an electronics industry with possibly no right-to-repair opportunities for global consumer and commercial buyers of electronics things buyers like me and you and everyone we know purchases, in just five to ten years from now it is possible changes impacting chips sourcing and components obsolescence and product lifecycles could lead to heavy consolidation in chip supply chains and Malaysia’s economic theater will look like what Turkey’s economic theater looks like today.
To help connect the dots look at what is happening to changes in semiconductor components distribution industry.
Mark Zetter – January 28, 2022
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