Latest news with #NationalSemiconductorStrategy
Time of India
8 hours ago
- Business
- Time of India
Tata Electronics eyes Malaysia foray via chip fab acquisition
Tata Electronics is in talks with several global semiconductor companies including X-Fab , DNeX and Globetronics to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia, according to people in the know. The move is aimed at bolstering the Tata Group company's knowledge and talent base before entering the semiconductor assembly and packaging business in India. KC Ang, who was appointed president and head of Tata Semiconductor Manufacturing in April this year, is driving these acquisition efforts, the people said. 'Globetronics and DNeX's SilTerra facility are among the front runners to be acquired by Tata Electronics,' said one of the people. Tata Electronics is investing more than Rs 91,000 crore to set up a semiconductor fab unit at Dholera, Gujarat, and Rs 27,000 crore in an OSAT facility at Assam's Morigaon. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký "Running a fab is not going to be simple and Tata Electronics is aware of that," a second person said. ETtech Live Events "These potential acquisitions are being explored in Malaysia because it is one of the most economical options and talks have been going on with different players since April this year,' this person said. 'For the Tatas, it represents an opportunity to get the knowhow on how to run a fab or advanced packaging facility while also providing a training ground for Indian talent to learn how to run these high-tech facilities." Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Queries sent to Tata Electronics, X-Fab, DNeX and Globetronics remained unanswered as of press time Monday. Semicon hub Malaysia's expertise in assembly, testing, marking and packaging (ATMP) along with its mature ecosystem, abundant skilled workforce, robust supply chain and government support make it a preferred destination, according to analysts. "If Tata were to have a partnership or presence in Malaysia, it would enable Tata to develop expertise in ATMP, and it would complement the wafer fabrication and OSAT (operations) in India," Counterpoint Research senior analyst Parv Sharma said. 'It would also de-risk Tata from current semiconductor tariffs and provide a risk-free supply chain to serve a wider customer base globally," he added. Also, the Malaysian government's National Semiconductor Strategy, announced in May 2024, offers a significant incentive structure to attract investments. Indian companies are aiming to acquire manufacturing grade technology (MGT) from Malaysia for OSAT projects in particular, as it is the longstanding hub for both legacy and advanced packaging. "MGT can only come from an established player in the semiconductor industry who has IP defensibility for its technology and has the legal rights to license it to India," consultancy firm Fab Economics' CEO Danish Faruqui said. Malaysia holds 13% of the global market for chip packaging, assembly and testing services, as per a February 18 report by the Malaysian Investment Development Authority. Ripe for acquisition Typically, semiconductor businesses that are financially stressed and are looking to get a boost by licensing technology and/or expanding packaging capacity with new partners, are the most preferred targets by Indian players. "Globetronics, an OSAT player from Penang, Malaysia, has suffered multiple financial blows as recently as in 2024,' said Faruqui. Key public and private stakeholders had rolled back their positions in the company, necessitating boardroom changes and strategies for new partnerships and revenue streams, he added. As per Fab Economics, DNeX's SilTerra facility in Kulim is also being deemed a 'lucrative target' for Indian players for low-cost, high-fidelity technology licensing on the fabrication side. SilTerra is a semiconductor wafer foundry offering fabrication and design support services for integrated chips in various technologies. DNeX acquired a 60% stake in SilTerra in 2021 while the remaining 40% was acquired by Beijing-based Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre (CGP Fund), which is a Chinese investment fund focused on the semiconductor industry. The total acquisition cost was 273 million Malaysian ringgit (about $64 million now). X-Fab is a German specialty foundry group that has six wafer fabs located in Malaysia, Germany, France and the US. Located in Kuching, the capital city of Sarawak, the X-Fab facility in Malaysia manufactures wafers on modular CMOS technologies in geometries ranging from 350 nm to 180 nm. CMOS (Complementary Metal-Oxide-Semiconductor) is a type of technology used in computer processors, memory chips, and other electronic components.
New Straits Times
27-05-2025
- Business
- New Straits Times
Critical Holdings charts path to Main Market amid strong earnings and sector growth
KUALA LUMPUR: Critical Holdings Bhd is preparing for a leap to the Main Market of Bursa Malaysia, buoyed by impressive third-quarter financial results for the period ended March 31, 2025 (3QFY25) and growing confidence from shareholders. Non-independent executive director and chief executive officer Tan Si Lim said the group's upward trajectory is supported by sustained demand across high-growth sectors, including semiconductors, electric vehicles (EVs), and data centres. He noted that national policies such as the National Semiconductor Strategy and targeted incentives from the Ministry of Investment, Trade and Industry are creating a favourable ecosystem for technology-driven companies like Critical Holdings. "At the same time, global developments, including the 90-day suspension of tariffs and supply chain realignments, are opening up new avenues for agile, solutions-driven providers," he said. Critical Holdings reported a net profit of RM19.6 million for the cumulative nine months ended 3QFY25, a 59.9 per cent surge from RM12.3 million recorded in the same period last year, according to its latest financial report. The strong performance was driven primarily by a substantial increase in revenue from its mechanical, electrical and process utilities engineering solutions segment. For the third quarter, the group posted a profit after tax of RM10.06 million, up from RM2.78 million in the previous year's corresponding quarter. Revenue for the quarter surged 49.3 per cent year-on-year to RM97.6 million, up from RM65.4 million, largely due to the strong delivery of engineering solutions for cleanrooms, plant plantrooms, and data centres. With an order book of RM282 million and recent regional expansion into Johor, the company is poised to tap into the fast-growing tech ecosystem in Malaysia. "We are seeing increased industrial activity and investor interest in key regions like Johor, Batu Kawan and Kulim, which points to a strengthening of Malaysia's semiconductor value chain. "With our strong capabilities and expanding reach, Critical Holdings is well-positioned to capture these opportunities and deliver sustainable value to our stakeholders," Lim added.
The Star
27-05-2025
- Business
- The Star
Making strides in innovation
KUALA LUMPUR: Malaysia is stepping up efforts to position itself as a key player in the global innovation landscape, says Chang Lih Kang. The Science, Technology and Innovation Minister said Malaysia climbed from 36th place to 33rd in the Global Innovation Index 2024, a sign that the country's innovation agenda is gaining international recognition. 'This is no small feat. It shows the world that Malaysia is serious about building an innovation-driven economy,' he said. Chang said the improvement was the result of focused government policies and strong investment in research and development, as well as growing collaboration between the public and private sectors. 'But we cannot stop here. To keep moving forward, we need strong partners. China, with its strengths in advanced manufacturing, artificial intelligence (AI), green technology and more, is undoubtedly one of them,' he said during a speech at the Asean-China Economic Forum and the Third China International Supply Chain Expo Roadshow here yesterday. He said Malaysia's central position in Asean, combined with its skilled, multilingual workforce and business-friendly policies, makes it a natural partner for global companies looking to expand in the region. 'China brings scale and advanced technology. Malaysia brings agility and connectivity. Together, we can build not just strong supply chains, but smart and sustainable ones,' he said. Chang added the ministry is ensuring that science and technology become the backbone of Malaysia's future economy. This plan includes major investments in areas such as hydrogen, robotics, AI and semiconductors. He pointed to national efforts like the Hydrogen Economy and Technology Roadmap and the soon-to-be-launched National Semiconductor Strategy, both of which create space for deeper engagement with China and Asean. 'These efforts align with the Malaysia Madani vision – to build a sustainable, innovative and resilient nation,' Chang said. Malaysia-China Business Council (MCBC) chairman Tan Sri Low Kian Chuan said the recent upgrade of the Asean-China Free Trade Agreement (ACFTA 3.0), which includes new chapters on digital and green economies, supply chain connectivity and small and medium enterprises (SME) cooperation, has further strengthened regional ties. Asean and China, he said, are now each other's largest trading partners, with strong growth in trade and investment. China has been Asean's top trading partner for 16 years straight since 2009, and Asean has also become China's largest trading partner for the last five years since 2020, he added. 'Countries like Malaysia, Indonesia, Thailand and Vietnam are emerging as competitive production hubs, navigating geopolitical shifts while deepening economic ties with China,' he added. The MCBC and the China Council for the Promotion of International Trade (CCPIT) jointly hosted the forum and roadshow. It aims to strengthen Asean-China economic ties, promote resilient and sustainable supply chains, and showcase collaboration opportunities in key sectors such as advanced manufacturing, green agriculture, the digital economy, smart infrastructure and healthcare. The event is aligned with the forthcoming Third China International Supply Chain Expo, scheduled to take place in China from 16 to 20 July. Low said the forum and roadshow offer not just opportunities for large firms but also open doors for SMEs to integrate into China's vast supply chain network. 'This platform promotes greater inclusivity, resilience and sustainable growth,' he said. He also noted that as Asean Chair this year, Malaysia is well-placed to drive regional supply chain integration in sectors like semiconductors, renewable energy, electric vehicles and digital technology. 'Our strategic location and capabilities make Malaysia an ideal hub. With the National Energy Transition Roadmap offering RM637bil in opportunities by 2050 and China's strengths in solar and hydropower, we see strong potential for collaboration,' Low said. Also present were the Prime Minister's political secretary Chan Ming Kai, MCBC director and chief executive officer Datuk Tan Tian Meng, CCPIT president Ren Hongbin and China International Exhibition Center Group chairman Lin Shunjie.
The Star
26-05-2025
- Business
- The Star
Evolving ties: Malaysia and China shift from trade to innovation partnership
KUALA LUMPUR: Malaysia and China's partnership is evolving from traditional trade to a deeper collaboration based on innovation, talent, and shared development goals, says Science, Technology and Innovation Minister Chang Lih Kang. He stated that China has been Malaysia's largest trading partner for 16 consecutive years; however, the relationship was evolving from transactional exchanges to transformational cooperation. 'We're not just exchanging goods anymore—we're sharing ideas, talent, and innovation,' he said during a speech at the Asean-China Economic Forum & The Third China International Supply Chain Expo Roadshow on Monday (May 26). Chang highlighted Malaysia's strategic position at the heart of Asean, supported by its multilingual workforce and pro-business environment, as a natural partner for global enterprises. "With China's technological scale and Malaysia's regional connectivity, both nations can jointly build smart and sustainable supply chains, "he said. Outlining Malaysia's innovation agenda, Chang said the government was investing in areas such as the hydrogen economy, AI, robotics and semiconductors through initiatives like the Hydrogen Economy and Technology Roadmap and the upcoming National Semiconductor Strategy. 'These efforts are in line with the Malaysia Madani government's vision to create a future-ready, inclusive and resilient economy. 'In today's uncertain world, no country can stand alone. We must work together to create resilient, diverse, and responsive ecosystems that meet global challenges,' he added. Malaysia-China Business Council (MCBC) chairman Tan Sri Low Kian Chuan said the recent upgrade of the Asean-China Free Trade Agreement (ACFTA 3.0), which includes new chapters on the digital and green economies, supply chain connectivity, and SME cooperation, has further strengthened regional ties. Low said that Asean and China remain each other's top trading partners, with China holding the position for Asean since 2009 and Asean becoming China's largest partner since 2020. 'Countries like Malaysia, Indonesia, Thailand and Vietnam are emerging as competitive production hubs, navigating geopolitical shifts while deepening economic ties with China,' he added. The Malaysia-China Business Council (MCBC) and the China Council for the Promotion of International Trade (CCPIT) jointly hosted the Asean-China Economic Forum & The Third International Supply Chain Expo Roadshow, aimed to strengthen Asean-China economic ties, promote resilient and sustainable supply chains, and showcase collaboration opportunities in key sectors such as advanced manufacturing, green agriculture, the digital economy, smart infrastructure, and healthcare. The Forum and Roadshow supported the upcoming Third China International Supply Chain Expo, to be held from July 16 to 20 in China. Low stated that the event provides opportunities for large firms and enables SMEs to integrate into China's extensive supply chain network. 'This platform promotes greater inclusivity, resilience and sustainable growth,' he said. As Asean Chair this year, Malaysia is well-positioned to drive regional supply chain integration in semiconductors, renewable energy, EVs, and digital technology sectors. 'Our strategic location and capabilities make Malaysia an ideal hub. With the National Energy Transition Roadmap offering RM637bil in opportunities by 2050, and China's strengths in solar and hydropower, we see strong potential for collaboration,' Low said. He invited Chinese and Asean businesses to partner with Malaysia in building 'long-term, win-win cooperation,' saying innovation and smart manufacturing would be key to future growth.
The Star
25-05-2025
- Business
- The Star
Strengthening M'sia's semiconductor sector
Inked: Tseng (second from left) and TAR UMT president Prof Dr Lee Sze Wei (fourth from left) exchanging documents as (from far left) Arm Academic Programmes senior development manager Alex Su, Chan and Arm strategic business development director (Taiwan and Asean) regional lead Alex Lee look on. TAR UMT partners Arm, rolls out Integrated Circuit Design programme Tunku Abdul Rahman University of Management and Technology (TAR UMT) is taking a step forward towards helping the nation achieve its National Semiconductor Strategy (NSS) following a recently inked partnership with Arm Academic Access, and the launch of the varsity's Micro Credential Programme (MCP) in Integrated Circuit Design (IC). The collaboration with Arm, which will grant students access to the company's architecture and development software tools, and the newly introduced programme, marks more than a milestone for the university - it represents Malaysia's resolve to move from users of technology to creators of it, said TAR UMT board of governors chairman Tan Sri Chan Kong Choy. 'Our students will not just learn, they will lead,' he said in his speech at the signing ceremony between TAR UMT and Arm at the varsity's Kuala Lumpur campus on May 15. Developed in close collaboration with the industry, he said that the MCP provides a flexible, modular curriculum focused on System-on-Chip (SoC) design and artificial intelligence (AI) applications. Describing the initiative as timely and strategic, he said the move aligns with the NSS. Chan, who is also Alumni Council chairman, said the tie-up with Arm will position the university and its industry collaborators to assist the nation become a leader in semiconductor innovation, design and talent development. 'Such collaborations are essential in developing graduates who are not only job ready but also innovation ready,' he added. Last May, Prime Minister Datuk Seri Anwar Ibrahim launched the NSS aimed at making Malaysia an indispensable link in the global semiconductor supply chain. Currently, the nation is the sixth largest exporter of semiconductors globally and is aiming to move further up the value chain through a targeted focus on front-end activities. In his opening remarks, Arm Limited vice-president of North America Sales C.K Tseng said the Arm Academic Access programme includes more than 170 global institutions and active research projects. He added that the programme, which has over 1,000 academic users, is also supporting numerous academic collaboration. Tseng, who is also Arm Asean and Taiwan president, said that the collaboration with TAR UMT marks a commitment in providing and equipping students here with necessary tools to hone their skills in the specialised sector. 'The agreement between TAR UMT and Arm is not just about enabling students and educators - it is also about empowering the next generation in the critical semiconductor sector,' he said, adding that the collaboration is also in line with Malaysia's industrial transformation agenda. He said the goal was to see Malaysia produce 10,000 semiconductor sector professionals who will be involved in value-added up steam activities as opposed to mere back-end activities. During the event, memorandum of understandings (MOUs) were also signed between TAR UMT and IC design industry collaborators, namely, Spring Semiconductor Sdn Bhd, Starfive Technology International Sdn Bhd and Efinix Technology Sdn Bhd.
