Latest news with #ASEANSemiconductorSummit2025
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
Reaffirming Malaysia's chip ambitions
by CIMB SECURITIES AT THE ASEAN Semiconductor Summit 2025 (ASEMIS), Prime Minister Datuk Seri Anwar Ibrahim and Ministry of Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz reinforced Malaysia's ambition to become a global semiconductor powerhouse under the National Semiconductor Strategy (NSS). Launched in May 2024, the NSS aims to shift Malaysia beyond a 'Made in Malaysia' model to a 'Made by Malaysia' one by strengthening local capabilities in integrated circuit (IC) design, research and development (R&D), advanced packaging and nurturing homegrown champions across the value chain. NSS Progress Since its launch, the NSS has attracted RM63 billion in investments (RM58 billion foreign direct investment [FDI], RM5.2 billion domestic direct investment), led by high-impact projects from Infineon (opened world's largest 200mm silicon carbide power fab), Carsem (M) Sdn Bhd's advanced packaging technologies for artificial intelligence (AI) and energy efficiency, NXP Semiconductors NV's semiconductor products, Syntiant Corp's micro-electro-mechanical systems (MEMS) microphone and sensors, and Plexus Corp' manufacture and re-manufacture of printed circuit boards. These investments underscore rising investor confidence in Malaysia's semiconductor ecosystem. Building Local Champions Malaysia aims to develop 10 local semiconductor firms with revenues exceeding US$1 billion (RM4.24 billion) and 100 firms with revenues exceeding RM1 billion. The government has identified 13 Malaysian-based companies across the semiconductor value chain as key beneficiaries, including Carsem (Malaysian Pacific Industries Bhd [MPI]), Inari Amertron Bhd, Pentamaster Corp Bhd, ViTrox Corp Bhd and Kellington Group Bhd. In addition, promising IC design and services firms like Oppstar Bhd, SkyeChip Sdn Bhd, Infinecs Systems Sdn Bhd and Experior are also being nurtured to spearhead Malaysia's next phase of semiconductor growth. Talent Development and Wages Uplift Over 30,000 high-skilled workers have been trained under NSS-linked programmes. Initiatives by Collaborative Research in Engineering, Science and Technology (CREST), TalentCorp (M) Bhd and the Ministry of Human Resources (Kesuma) have led to wage gains of up to 20% for over 1,100 participants. The median manufacturing wage rose 6% year-on-year (YoY) to RM2,745 per month in the first quarter of 2025 (1Q25). Strategic Funding and Support More than RM2 billion has been committed by government-linked investment companies (GLICs) (eg, Khazanah Nasional Bhd, Retirement Fund Inc [KWAP]) and development banks via the GEAR-uP initiative. This complements a planned RM25 billion in total fiscal support under the NSS to accelerate R&D, ecosystem development and global partnerships. ASEAN Supply Chain Integration As ASEAN Chair in 2025, Malaysia is spearheading the ASEAN Integrated Semiconductor Supply Chain Framework to harmonise talent flows, fiscal incentives and infrastructure across member states. A memorandum of understanding (MOU) signed by the semiconductor associations of Malaysia, Singapore, Vietnam, Thailand and the Philippines aims to create a unified regional chip ecosystem. Conclusion Malaysia's transition from a back-end assebly base to a design-to-packaging semiconductor hub remains a work in progress. However, we are encouraged to see that the NSS is gaining investor traction, institutional support and regional momentum. With RM63 billion in committed investments, an increase in local champions and stronger ASEAN alignment, Malaysia is positioning itself as a neutral, indispensable node in the global chip supply chain. We see this as one of the key advantages in ensuring Malaysia remains an attractive destination for semiconductor manufacturing globally. Our current top picks in the Malaysian outsourced semiconductor assembly and test (OSAT) sector are Inari Amertron ('Buy'; target price [TP]:RM2.20) and MPI ('Buy'; TP: RM30). We also like ViTrox ('Hold'; TP: RM3.80) for exposure to the Malaysian Automated Test Equipment (ATE) sector. Extracted from CIMB Securities Sdn Bhd's report dated July 25, 2025. This article first appeared in The Malaysian Reserve weekly print edition
Focus Malaysia
25-07-2025
- Automotive
- Focus Malaysia
Malaysia's RM63 bil semiconductor push shows progress, but value chain ascent still early
MBSB Research is maintaining their neutral stance on the technology sector following their participation in the recently concluded ASEAN Semiconductor Summit 2025 (ASEMIS). The government's effort to reestablish the country's positioning in the semiconductor global supply chain has started to yield results. A year after the announcement of the National Semiconductor Strategy (NSS), a notable strategic investment of RM63 bil has been secured, along with over 13k talent being groom as well as wider research and development (R&D) footprint. IN 2023, the ASEAN semiconductor market stood at over USD 31 bil. By 2032, the ASEAN semiconductor market has the potential to exceed USD52 bil by moving up the value chain. To further drive growth in the Malaysia as well as the broader ASEAN semiconductor landscape, the government put forth three new measures in the areas of capital, G2G collaboration and talent. 'While we acknowledge the milestone and commitment to the target set, we view that we are still at an early stage of the progress. Thus, more time is required to climb up the semiconductor value chain,' said MBSB. The NSS was announced in May 2024 to redefine the country's position in the global semiconductor supply chain. It focuses on integrated circuit (IC) design, advanced packaging and advanced manufacturing equipment. In addition, it also seeks to train 60k high-skilled engineers and establish a global R&D hub for semiconductors. As of March 2025, Malaysia has secured over RM63 bil in semiconductor investments. Of this RM 59 bil originated from foreign investors while the remainder RM5 bil came from domestic sources. Some of the notable projects include Carsem's advanced packaging for energy efficiency, EV, connectivity and AI; NXP's semiconductor products, Infineon's world's largest 200mm silicon carbide (SiC) power fab, Syntiant's MEMS microphone and sensors; and Plexus' manufacture and re-manufacture of Printed Circuit Boards. Meanwhile, more than 13k highly skilled workers have been trained through national programmes such as CREST's ETSI and TalentCorp's MyMahir initiative. The R&D footprint is also growing, supported by including Penang's Silicon Design@5km+, Selangor's IC Design Park and Sarawak's SMD Semiconductor initiative. Firstly, the government aims to unlock more catalytic capital to support early-stage R&D, product development, and ecosystem scaling. This includes a suite of targeted financing instruments, matching funds, and customised incentives, alongside continued investments by the GLICs. Secondly, the government is also seeking deeper G2G cooperation. This will be carried out via the creation of ASEAN Framework for Integrated Semiconductor Supply Chain (AFISS). The framework will revolve around policy alignment, infrastructure readiness and deeper cross-border collaboration. Thirdly, to further close the gap on talent shortage, the government will also drive stronger collaboration across public, private, and academic institutions. This also extends to intensifying R&D efforts through strategic collaboration between government, industry, and academia. —July 1, 2025 Main image: The Malaysian Reserve
The Sun
24-07-2025
- Politics
- The Sun
Anwar urges peace talks amid Thailand-Cambodia border clash
PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has urged Thailand and Cambodia to halt military engagements along their disputed border and prioritise peace talks. His remarks follow fresh clashes between the two nations early Thursday, which resulted in casualties. Anwar expressed concern over the escalating conflict, stating, 'They're important members of ASEAN; they're very close to Malaysia, and I have been messaging both the Prime Ministers. The least we can expect is for them to stand down, and hopefully to try and enter into negotiations.' He emphasised that peace remains the only viable option, adding, 'They have tried, but I still think peace is the only option available.' Anwar made these comments after delivering his keynote address at the ASEAN Semiconductor Summit 2025 (ASEMIS) in Petaling Jaya. The Prime Minister revealed he had previously engaged in discussions with Cambodian Prime Minister Hun Manet and Thailand's now-suspended leader Paetongtarn Shinawatra last month. He expressed willingness to facilitate further talks to de-escalate tensions. Thailand's political landscape has added complexity to the situation, with former defence chief Phumtham Wechayachai serving as acting Prime Minister following Paetongtarn's suspension over an ethics probe. When questioned about potential trade disruptions, Anwar dismissed premature concerns, stating, 'I think it's temporary. Both have their countries' interests at heart. Both want a peaceful resolution of the conflict, and both want to keep ASEAN engaged.' The border dispute between Thailand and Cambodia dates back decades, with an 817-km undemarcated boundary remaining a persistent source of friction. Recent clashes began on May 28, escalating after a Cambodian soldier was killed in a shootout. Tensions worsened this week as Thailand downgraded diplomatic ties following an alleged landmine explosion injuring a Thai soldier. Cambodia retaliated by reducing its diplomatic relations to the lowest level. Thursday's clash reportedly left a Thai civilian dead and three others, including a child, seriously injured. As ASEAN Chair for 2025, Malaysia is positioned to mediate, with Anwar reaffirming the bloc's commitment to stability. - Bernama
