Malaysia's Semiconductor Industry Must Diversify To Sustain Global Position

Malaysia's semiconductor industry must diversify and go beyond its heavy reliance on multinational corporations and manufacturing capabilities to secure its position in the global market, especially in the face of potential disruptions, said Economy Minister Rafizi Ramli.

He emphasised the need for a more dynamic ecosystem that includes startups, innovative tech pioneers, and a blend of venture capital and private equity (PE) to drive growth.

“It is obvious that Malaysia sits very attractively in the global semiconductor and artificial intelligence scene.

“As much as this is good news, this position is not guaranteed, it's a very competitive and dynamic environment, and with the rise of de-risking and China+1 strategies, the landscape has fundamentally shifted,” he said in his speech before officiating the Malaysia Semiconductor Recruitment Day 2024.

Rafizi said in recent years, the challenge has been shifting up the value chain from backend processes to front-end operations — transitioning from assembly and testing to designing chips.

“When we talk about integrated circuit (IC) design, it's about innovation, technology, research and development.

“Therefore, it is very much a startup environment which means that you require different kinds of people, different types of risk profiles and it requires different kinds of funding and business models. That's why we need venture capital and PE firms,” he said.

On the same note, he said the industry's demand for engineers will continue to grow.

“I think they estimated that we need around 60,000 engineers and that is why government departments, agencies, private sectors and the universities are working together to ensure we can meet this demand,” he said.

He added that Malaysia has a sizeable presence in the electrical and electronic sector, which contributes about eight% to the nation's gross domestic product, or roughly RM143 billion annually, supported by decades of efforts in shoring up its position to be a key player within the global supply chain.

Meanwhile, Rafizi was happy to note that within just five months, seven firms have joined the IC Design Park in Puchong, creating approximately 600 jobs in front-end chip design, with plans to attract 15 more foreign companies that have shown strong interest in the park.

“If we can sustain this momentum, we should be able to meet the target of onboarding 20,000 high-skilled professionals,” he said.

The Semiconductor Recruitment Day 2024 is organised by the Selangor Information Technology and Digital Economy Corporation (Sidec) in collaboration with Malaysia Advanced Semiconductor Academy.

With 25 prominent companies participating and more than 2,000 graduates registered, the recruitment day is designed to connect job seekers with top industry players.

Key participating companies include NXP, Renesas, Infineon, Inari Amertron, Neways, Vitrox, STMicroelectronics, HCLTech, Chipsbank, Betterlife, Oppstar, Synopsys, Skyechip, and AppAsia.

These companies are actively recruiting for roles such as RTL Design Engineer, Design Verification Engineer, Physical Design Engineer, Analog Circuit Design Engineer, and Layout Design Engineer, with a starting salary of RM5,000 for entry-level engineers.