KUALA LUMPUR (July 27): Malaysia has the right ecosystem and talent to attract more investments in the semiconductor space, according to the Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai.

Speaking at a panel discussion here on Wednesday (July 27), Wong said the country witnessed inflow in investment on semiconductors as Malaysia has built a strong base over the years.

“Malaysian Investment Development Authority (MIDA) has done a fantastic job in attracting these semiconductor companies to invest in Malaysia.

“Not just the ecosystem itself, but we have the right infrastructure, including our engineers, contractors and architects to build factories to international standards,” he said.

In December last year, US chip giant Intel Corporation pledged US$7 billion (approximately RM30 billion) in Penang to expand its advanced semiconductor packaging technology.

Meanwhile, he also shared that the global semiconductor industry is expected to grow 7.1% in the next five years.

“Regardless of the inflation threat, geopolitical situation, (semiconductor) companies are putting the capital expenditure to build buildings and getting ready for the increase in demand [for] semiconductors in the near future,” Wong elaborated.

Separately, Nomura Asset Management Malaysia Sdn Bhd launched the Nomura Global Shariah Semiconductor Equity Fund on Wednesday to offer investors access to the rapidly growing semiconductor sector driven by global digitalisation trends.

The fund, which has a minimum initial investment of RM1,000 or US$1,000, will focus on quality companies with high growth potential, healthy profit margins and strong intellectual property, pricing power and balance sheets.

“We continue to innovate and offer investors opportunities to invest in assets with strong potential for growth and long runways.

“The acceleration in digitalisation including the rollout of 5G networks has intensified the need for greater connectivity, giving rise to an exponential surge in computing needs and demand for semiconductor chips, which are essential components of most electronic devices.

“The timely launch of the fund enables us to capitalise on such trends and provide investors access to high-quality global semiconductor companies while achieving portfolio diversification,” according to Nomura Asset Management Malaysia managing director Leslie Yap.