Latest news with #RM63bil
The Star
2 days ago
- Business
- The Star
Malaysia vital to global semiconductor industry
FILE PHOTO: Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo PETALING JAYA: CIMB Research believes Malaysia remains an attractive destination for semiconductor manufacturing globally given the country's committed investments and a neutral party amid global trade tensions. 'With RM63bil 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,' the research house said. It added that Malaysia's transition from a back-end assembly base to a design-to-packaging semiconductor hub remains a work in progress. However, it said it was encouraged to see that the National Semiconductor Strategy (NSS) is gaining investor traction, institutional support, and regional momentum. CIMB Research said the NSS, launched in May 2024, 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, advanced packaging, and nurturing homegrown champions across the value chain. The research house said, since its launch, the NSS has attracted RM63bil in investments, of which RM58bil was foreign direct investment and RM5.2bil domestic direct investment. 'These investments underscore rising investor confidence in Malaysia's semiconductor ecosystem,' it added. The research house said Malaysia aims to develop 10 local semiconductor firms with revenues exceeding US$1bil and 100 companies with revenues exceeding RM1bil. 'The government has identified 13 Malaysian-based companies across the semiconductor value chain as key beneficiaries, including Carsem (M) Sdn Bhd, 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 Bhd, Infinecs Systems Sdn Bhd, and Experior Technology Sdn Bhd are also being nurtured to spearhead Malaysia's next phase of semiconductor growth,' the research house said, adding that more than RM2bil has been committed by government-linked investment companies and development banks via the GEAR-uP initiative. CIMB Research's top picks in the Malaysian outsourced semiconductor assembly and test sector are Inari Amertron Bhd and MPI. It also likes ViTrox for exposure to the automated test equipment sector.
The Star
7 days ago
- Business
- The Star
Anwar urges semiconductor industry: Products must be made by Malaysians
Semiconductors produced in Malaysia must be made by Malaysians, and national companies should lead among Fortune 500 tech firms, says Prime Minister Datuk Seri Anwar Ibrahim. He said that while investors are welcome, Malaysia will be strategic by choosing partners who strengthen supply chains, transfer knowledge, and deliver real value to Malaysians. Anwar made these remarks during his closing speech at the Asean Semiconductor Summit 2025 on Thursday (July 24). He highlighted that the National Semiconductor Strategy (NSS), launched in May 2024, has been successful, securing over RM63bil in investments, with RM5bil from domestic and RM58bil from foreign sources. "Our mindset must shift from 'Made in Malaysia' to 'Made by Malaysians'. Our established semiconductor ecosystem is well-poised to move beyond an FDI-first model and focus on building home-grown champions. "We want long-term collaborators who grow with us. The target now is to deliver the 10+100. This means building 10 Malaysian semiconductor companies with revenues between RM1bil and RM4.7bil, and nurturing at least 100 more to approach the RM1bil mark. "These companies will export Malaysian products globally and bring our knowledge, value creation, and talent into Asean and global markets. They will be our flag bearers abroad, rooted at home," said Anwar. He said that more than 60,000 engineers will be trained through a collaboration between the Collaborative Research in Engineering, Science and Technology (CREST) under the Investment, Trade and Industry Ministry (MITI) and HRD-Corp under the Human Resource Ministry, with RM1.2bil allocated over five years. Anwar then urged Asean countries to work as a community rather than as single nations to address the shortage of skilled workers in the semiconductor industry. "As of March 2025, we have secured more than RM63bil in investments, with RM5bil from domestic and RM58bil from foreign sources. Regarding the growth of 10 semiconductor companies with revenue over USD1bil and 100 with less than RM1bil, I am proud to share that Malaysia now has at least 13 home-grown companies emerging as potential national champions. "Less than fifty years from now, we want Malaysia to look back at this moment as the tipping point when the country began grooming its Fortune 500 tech companies," said Anwar. Malaysia is currently the world's sixth-largest exporter of semiconductors. At the same event, MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz stated that "Made by Malaysia" is a vision requiring a whole-of-nation effort. "Every RM1 spent generates over RM2 in direct output across the economy—through supply chains, supporting sectors, and household incomes. Last year, the industry generated RM4.9tril in economic output, underscoring its role as a national multiplier," said Tengku Zafrul. He also said that Asean countries must move beyond fragmented efforts and instead embrace a collective "race to the top", leveraging each nation's unique strengths.
