Malaysia launches chip design hub to boost semiconductor industry

Malaysia has unveiled a new chip-design hub in Selangor state as part of its ambitious plan to elevate its semiconductor industry.

The Southeast Asian nation aims to shift its focus from lower-value activities such as testing and packaging to higher-value chip design.

The escalating demand for semiconductors driven by the growing data centre industry presents a significant opportunity, said Economy Minister Rafizi Ramli on Tuesday.

“At some point we want to move away from using chips that are designed elsewhere. We want to see more data centres in Malaysia using chips designed by Malaysians,” he added.

Located in Puchong, near the capital Kuala Lumpur, the Malaysia Semiconductor IC Design Park has secured partnerships with industry giants such as Cadence Design Systems and Arm Holdings.

Malaysia has already established itself as a key player in the global semiconductor supply chain, hosting chip packaging facilities for major corporations like Intel, GlobalFoundries, and Infineon Technologies.

The country’s strategic location and business-friendly environment have also attracted Chinese chipmakers seeking to expand their operations.

To bolster its semiconductor industry, Malaysia committed at least 25 billion ringgits ($5.6 billion) earlier this year.

The government aims to double semiconductor exports to 1.2 trillion ringgits by 2030, solidifying the country’s position as the world’s sixth-largest chip exporter.

Attribution: Bloomberg