KUALA LUMPUR (May 28): The government is allocating at least RM25 billion to support the newly launched National Semiconductor Strategy (NSS), Prime Minister Datuk Seri Anwar Ibrahim said on Tuesday.
The allocation will be utilised for targeted incentives, Anwar said in his speech at the Semicon Southeast Asia 2024. The Ministry of Investment, Trade, and Industry (Miti) will announce details of the strategy aimed at catapulting Malaysia to the top in the semiconductor industry, he said.
“Today, I offer our nation as the most neutral and non-aligned location for semiconductor production, to help build a more secure and resilient global semiconductor supply chain,” the prime minister said.
For the first phase, Miti is leading several agencies and other ministries in a quest to attract at least RM500 billion of investments, he noted.
The focus of domestic direct investment will be on integrated circuit design, advanced packaging and manufacturing equipment, while that of foreign direct investment will be on wafer fabrication and manufacturing equipment, Anwar said.
“To stay flexible and agile, the NSS will be a living document, evolving as needed, but we remain steadfast in our aspiration to make Malaysia a major global player in accessible technology for all, powered by our semiconductor industry,” Anwar added.
Under the NSS, the government also aims to establish at least 10 Malaysian companies in design and advanced packaging with revenues between RM1 billion and RM4.7 billion, as well as having more than 100 companies in the sector with revenues close to RM1 billion.
Further, the government seeks to develop Malaysia as a global hub for semiconductors, with universities, corporate research and development, and centres of excellence staffed by Malaysian and international talents.
To nurture talents for the semiconductor industry, the government will also train and upskill up to 60,000 high-skilled Malaysian engineers.