Latest news with #NationalSemiconductorStrategy
BusinessToday
3 hours ago
- Business
- BusinessToday
Malaysia Courts Silicon And Scalpel Giants In San Francisco
Malaysia's global investment drive continues to gain momentum, with two major US tech firms, Halo Industries and Intuitive Surgical, exploring opportunities to set up operations in the country, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. In a Facebook post during his visit to San Francisco, Zafrul revealed that Halo Industries, a leading American semiconductor player, is considering expanding to Malaysia — a move he said would elevate the nation's role in the global semiconductor supply chain. This aligns with Malaysia's National Semiconductor Strategy (NSS) and the New Industrial Master Plan 2030 (NIMP2030). 'Not the Halo game, but Halo Industries, one of the leading semiconductor companies in the United States,' Zafrul quipped in his post, thanking the company for its trust in Malaysia. In a separate engagement, the minister also met with executives of Intuitive Surgical, a company behind advanced robotics and AI-driven surgical platforms. Discussions focused on Malaysia's potential as a high-tech investment hub for the medical technology sector. Zafrul said the government, through MITI and the Malaysian Investment Development Authority (MIDA), is fully committed to supporting such initiatives, which are expected to create high-skilled jobs and drive sustainable economic growth. 'The Malaysian government, through MITI and MIDA, is committed to fully supporting this effort,' he said. Related
New Straits Times
3 days ago
- Business
- New Straits Times
Talent Will Determine Malaysia's High-Tech Ascent
Malaysia is entering a critical phase in its economic trajectory. The government's National Semiconductor Strategy (NSS), complementing the New Industrial Master Plan (NIMP) 2030 anchored by Ministry of Investment, Trade, and Industry (MITI), signals a shift toward deep technology, advanced manufacturing, and innovation-led growth. Malaysia's efforts are already bearing fruit. Apart from record breaking investments in the past year driven by surge in technology and manufacturing sector, our improvement in the World Competitiveness Rankings by 11 spots, from 34 to 23, in the annual ranking published by Institute of Management Development reflects this shift. At the core of this transformation lies the semiconductor industry—a sector that is not only economically strategic but also geopolitically consequential. Malaysia contributes around 13% of global back-end assembly, test, and packaging (ATP). But long-term competitiveness cannot be built on volume alone. Upstream capabilities in chip design, wafer fabrication, and IP creation are now prerequisites for value capture. During the NSS launch, Prime Minister Datuk Seri Anwar Ibrahim set a bold ambition: attract RM500 billion in semiconductor investment by 2030 and train 60,000 high-skilled engineers. NIMP 2030 reinforces this with a broader aim to boost high-tech manufacturing, double median wages to RM4,500, and position Malaysia as a regional tech hub. These plans are well-timed and well-articulated—but they face a critical constraint: human capital. The Talent Bottleneck: Malaysia's Biggest Risk Factor Malaysia has no shortage of university graduates, yet employers continue to report shortages in areas most relevant to frontier tech industries. This talent gap is a major barrier to entry into upstream semiconductor activities, where global competition is fiercest. The problem is not unique to Malaysia. Globally, the semiconductor sector faces a forecasted shortfall of over 1 million skilled workers by 2030, according to reports by research houses. However, countries are responding with decisive and focused interventions. Local Models: K‑Youth and Industry-Led Programmes Malaysia has already begun investing in new workforce development models. One example is government-linked Khazanah Nasional's K‑Youth Development Programme. Having trained over 8,000 participants with an 83% placement rate, the programme combines technical training, soft skills, and paid industry placements, co-designed with employers. RM200 million has been committed to train 11,000 more in 2025. Additionally, 42 Malaysia (42MY)—a free, peer-to-peer coding school established by Khazanah—focuses on digital and programming skills that are increasingly relevant in chip design, embedded systems, and AI-enhanced manufacturing. Apart from GLCs, multinationals are also stepping up. For example, Infineon Technologies, which is investing RM25 billion in Melaka, has partnered with local polytechnics to build a semiconductor talent pipeline with skills-based training. Intel Malaysia's latest RM30 billion expansion in Penang includes a commitment to upskilling over 4,000 local engineers. Internationally, Malaysia can draw useful lessons from peer economies. TSMC's Semiconductor Academy aligns curriculum across universities with the direct needs of chip fabrication and design. Meanwhile, India's Semiconductor Mission is setting up chip design and packaging skill hubs through its IIT system and private sector partners like Vedanta-Foxconn. Without a comprehensive approach to workforce development—backed by industry, GLCs, and academia—Malaysia risks missing the window. Linking Talent to Capital and Capability Beyond training, Malaysia's long-term semiconductor success requires simultaneous investment in ecosystem resilience and industrial capability. And again, capacity building initiatives such as this requires push from government-linked companies with national interest mandate. Through catalytic capital deployment under programs like Dana Impak, also introduced by Khazanah to transform firms and cultivate innovation, Malaysia seeks to unlock high-value segments in the global semiconductor chain. These efforts aim to deepen local value-creation and future-proof Malaysia's position in global supply chains. By aligning talent strategies, capital investment and vendor development, Malaysia is leveraging a once-in-a-generation opportunity to create a resilient, innovation-led economy that celebrates the ethos of establishing a nation that creates. Policy Implications and Execution Priorities To convert plans into capabilities, three actions are critical. First is deepening Industry–Talent Integration. Scale up models like K‑Youth and university-industry consortia to target advanced semiconductor roles. Second, is to accelerate R&D–Training Hubs. Fast-track the IC Design Park in Selangor and the Kerian Integrated Circuit Hub in Perak—while ensuring they include training centres in their architecture. Third, and most critical, is to strengthen governance and coordination across stakeholders. A Semiconductor Talent Council—housed within MITI or in collaboration with agencies like HRD Corp—should track skills supply and demand, fund upskilling programmes, and ensure inter-agency alignment across MOHE, MOF, GLICs like Khazanah, EPF, KWAP and other private sector investors in a whole of nation approach. Competing on Talent, Not Tax Incentives Malaysia cannot out-subsidise or out-infrastructure global competitors. But it can out-execute in talent development—if the effort is strategic, coordinated, and industry-driven. Khazanah's K‑Youth, Infineon's polytechnic partnerships, and Intel's upskilling initiative provide promising blueprints. The challenge is to scale fast and deepen specialisation, aligning with NSS goals. Semiconductors are not just a high-value export; they are the gateway to an entire future economy. Malaysia's competitiveness—like its sovereignty—will increasingly depend on its ability to create and retain deep tech talent. GLCs must continue to act as enablers of Malaysia's new economy, giving opportunities to skill local talents who will be the drivers that will lift the ceiling and achieve the lofty ambitions set by the Madani Economic Framework. More GLCs should redirect their effort in cultivating technology sectors and move us up the value chain as nations that innovate and create, securing our economic future. We must act faster. In short: Malaysia as a whole must invest in people as aggressively as we invest in plants. That will determine whether we are merely part of the global semiconductor conversation—or helping to lead it.
Time of India
03-06-2025
- Business
- Time of India
Tata Electronics eyes Malaysia foray via chip fab acquisition
Tata Electronics is in talks with several global semiconductor companies including X-Fab , DNeX and Globetronics to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia, according to people in the know. The move is aimed at bolstering the Tata Group company's knowledge and talent base before entering the semiconductor assembly and packaging business in India. KC Ang, who was appointed president and head of Tata Semiconductor Manufacturing in April this year, is driving these acquisition efforts, the people said. 'Globetronics and DNeX's SilTerra facility are among the front runners to be acquired by Tata Electronics,' said one of the people. Tata Electronics is investing more than Rs 91,000 crore to set up a semiconductor fab unit at Dholera, Gujarat, and Rs 27,000 crore in an OSAT facility at Assam's Morigaon. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký "Running a fab is not going to be simple and Tata Electronics is aware of that," a second person said. ETtech Live Events "These potential acquisitions are being explored in Malaysia because it is one of the most economical options and talks have been going on with different players since April this year,' this person said. 'For the Tatas, it represents an opportunity to get the knowhow on how to run a fab or advanced packaging facility while also providing a training ground for Indian talent to learn how to run these high-tech facilities." Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Queries sent to Tata Electronics, X-Fab, DNeX and Globetronics remained unanswered as of press time Monday. Semicon hub Malaysia's expertise in assembly, testing, marking and packaging (ATMP) along with its mature ecosystem, abundant skilled workforce, robust supply chain and government support make it a preferred destination, according to analysts. "If Tata were to have a partnership or presence in Malaysia, it would enable Tata to develop expertise in ATMP, and it would complement the wafer fabrication and OSAT (operations) in India," Counterpoint Research senior analyst Parv Sharma said. 'It would also de-risk Tata from current semiconductor tariffs and provide a risk-free supply chain to serve a wider customer base globally," he added. Also, the Malaysian government's National Semiconductor Strategy, announced in May 2024, offers a significant incentive structure to attract investments. Indian companies are aiming to acquire manufacturing grade technology (MGT) from Malaysia for OSAT projects in particular, as it is the longstanding hub for both legacy and advanced packaging. "MGT can only come from an established player in the semiconductor industry who has IP defensibility for its technology and has the legal rights to license it to India," consultancy firm Fab Economics' CEO Danish Faruqui said. Malaysia holds 13% of the global market for chip packaging, assembly and testing services, as per a February 18 report by the Malaysian Investment Development Authority. Ripe for acquisition Typically, semiconductor businesses that are financially stressed and are looking to get a boost by licensing technology and/or expanding packaging capacity with new partners, are the most preferred targets by Indian players. "Globetronics, an OSAT player from Penang, Malaysia, has suffered multiple financial blows as recently as in 2024,' said Faruqui. Key public and private stakeholders had rolled back their positions in the company, necessitating boardroom changes and strategies for new partnerships and revenue streams, he added. As per Fab Economics, DNeX's SilTerra facility in Kulim is also being deemed a 'lucrative target' for Indian players for low-cost, high-fidelity technology licensing on the fabrication side. SilTerra is a semiconductor wafer foundry offering fabrication and design support services for integrated chips in various technologies. DNeX acquired a 60% stake in SilTerra in 2021 while the remaining 40% was acquired by Beijing-based Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre (CGP Fund), which is a Chinese investment fund focused on the semiconductor industry. The total acquisition cost was 273 million Malaysian ringgit (about $64 million now). X-Fab is a German specialty foundry group that has six wafer fabs located in Malaysia, Germany, France and the US. Located in Kuching, the capital city of Sarawak, the X-Fab facility in Malaysia manufactures wafers on modular CMOS technologies in geometries ranging from 350 nm to 180 nm. CMOS (Complementary Metal-Oxide-Semiconductor) is a type of technology used in computer processors, memory chips, and other electronic components.
New Straits Times
27-05-2025
- Business
- New Straits Times
Critical Holdings charts path to Main Market amid strong earnings and sector growth
KUALA LUMPUR: Critical Holdings Bhd is preparing for a leap to the Main Market of Bursa Malaysia, buoyed by impressive third-quarter financial results for the period ended March 31, 2025 (3QFY25) and growing confidence from shareholders. Non-independent executive director and chief executive officer Tan Si Lim said the group's upward trajectory is supported by sustained demand across high-growth sectors, including semiconductors, electric vehicles (EVs), and data centres. He noted that national policies such as the National Semiconductor Strategy and targeted incentives from the Ministry of Investment, Trade and Industry are creating a favourable ecosystem for technology-driven companies like Critical Holdings. "At the same time, global developments, including the 90-day suspension of tariffs and supply chain realignments, are opening up new avenues for agile, solutions-driven providers," he said. Critical Holdings reported a net profit of RM19.6 million for the cumulative nine months ended 3QFY25, a 59.9 per cent surge from RM12.3 million recorded in the same period last year, according to its latest financial report. The strong performance was driven primarily by a substantial increase in revenue from its mechanical, electrical and process utilities engineering solutions segment. For the third quarter, the group posted a profit after tax of RM10.06 million, up from RM2.78 million in the previous year's corresponding quarter. Revenue for the quarter surged 49.3 per cent year-on-year to RM97.6 million, up from RM65.4 million, largely due to the strong delivery of engineering solutions for cleanrooms, plant plantrooms, and data centres. With an order book of RM282 million and recent regional expansion into Johor, the company is poised to tap into the fast-growing tech ecosystem in Malaysia. "We are seeing increased industrial activity and investor interest in key regions like Johor, Batu Kawan and Kulim, which points to a strengthening of Malaysia's semiconductor value chain. "With our strong capabilities and expanding reach, Critical Holdings is well-positioned to capture these opportunities and deliver sustainable value to our stakeholders," Lim added.
The Star
27-05-2025
- Business
- The Star
Making strides in innovation
KUALA LUMPUR: Malaysia is stepping up efforts to position itself as a key player in the global innovation landscape, says Chang Lih Kang. The Science, Technology and Innovation Minister said Malaysia climbed from 36th place to 33rd in the Global Innovation Index 2024, a sign that the country's innovation agenda is gaining international recognition. 'This is no small feat. It shows the world that Malaysia is serious about building an innovation-driven economy,' he said. Chang said the improvement was the result of focused government policies and strong investment in research and development, as well as growing collaboration between the public and private sectors. 'But we cannot stop here. To keep moving forward, we need strong partners. China, with its strengths in advanced manufacturing, artificial intelligence (AI), green technology and more, is undoubtedly one of them,' he said during a speech at the Asean-China Economic Forum and the Third China International Supply Chain Expo Roadshow here yesterday. He said Malaysia's central position in Asean, combined with its skilled, multilingual workforce and business-friendly policies, makes it a natural partner for global companies looking to expand in the region. 'China brings scale and advanced technology. Malaysia brings agility and connectivity. Together, we can build not just strong supply chains, but smart and sustainable ones,' he said. Chang added the ministry is ensuring that science and technology become the backbone of Malaysia's future economy. This plan includes major investments in areas such as hydrogen, robotics, AI and semiconductors. He pointed to national efforts like the Hydrogen Economy and Technology Roadmap and the soon-to-be-launched National Semiconductor Strategy, both of which create space for deeper engagement with China and Asean. 'These efforts align with the Malaysia Madani vision – to build a sustainable, innovative and resilient nation,' Chang said. Malaysia-China Business Council (MCBC) chairman Tan Sri Low Kian Chuan said the recent upgrade of the Asean-China Free Trade Agreement (ACFTA 3.0), which includes new chapters on digital and green economies, supply chain connectivity and small and medium enterprises (SME) cooperation, has further strengthened regional ties. Asean and China, he said, are now each other's largest trading partners, with strong growth in trade and investment. China has been Asean's top trading partner for 16 years straight since 2009, and Asean has also become China's largest trading partner for the last five years since 2020, he added. 'Countries like Malaysia, Indonesia, Thailand and Vietnam are emerging as competitive production hubs, navigating geopolitical shifts while deepening economic ties with China,' he added. The MCBC and the China Council for the Promotion of International Trade (CCPIT) jointly hosted the forum and roadshow. It aims to strengthen Asean-China economic ties, promote resilient and sustainable supply chains, and showcase collaboration opportunities in key sectors such as advanced manufacturing, green agriculture, the digital economy, smart infrastructure and healthcare. The event is aligned with the forthcoming Third China International Supply Chain Expo, scheduled to take place in China from 16 to 20 July. Low said the forum and roadshow offer not just opportunities for large firms but also open doors for SMEs to integrate into China's vast supply chain network. 'This platform promotes greater inclusivity, resilience and sustainable growth,' he said. He also noted that as Asean Chair this year, Malaysia is well-placed to drive regional supply chain integration in sectors like semiconductors, renewable energy, electric vehicles and digital technology. 'Our strategic location and capabilities make Malaysia an ideal hub. With the National Energy Transition Roadmap offering RM637bil in opportunities by 2050 and China's strengths in solar and hydropower, we see strong potential for collaboration,' Low said. Also present were the Prime Minister's political secretary Chan Ming Kai, MCBC director and chief executive officer Datuk Tan Tian Meng, CCPIT president Ren Hongbin and China International Exhibition Center Group chairman Lin Shunjie.
