Malaysia’s leadership is attracting renewed interest in chipsets and semiconductor manufacturing. Ng Kok Tiong, a senior vice president with Infineon, and chairman of the Semiconductor Fabrication Association of Malaysia, says Infineon is in the “process of building a $7 billion facility that’ll be used as a production site for silicon carbide chips.”
Malaysia’s semiconductor manufacturing supply chain
“Malaysia benefited quite a bit from this diversification of the supply chain. Traffic increased a lot because of so many factories coming. The government is now widening the road, and that will likely be complete by next year”, adds Tiong.
In fact, Infineon today has more employees located in Malaysia than in the Company’s home base of Germany.
In the 1970s, Malaysia was referred to by many in the tech industry as the ‘Silicon Valley of the East’, but in the 1990s, Malaysia lost their leadership role in tech to South Korea and Taiwan. This was primarily due to fast-growing domestic firms such as Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC), respectively, during the 1990s.
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Meanwhile, in a recent article, with Nikkei asia research, Malaysia foreign direct investment (FDI) grew to an all-time high in Q1 2023 of $15.25 billion, more than doubling the entire amount for 2019. Full article at asia.nikkei.com
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