Malaysia’s Time to Rise as a Semiconductor Powerhouse is Now
Malaysia stands at a crucial inflection point in its technological journey. While some argue we are "out of the race" in the semiconductor foundry sector, the reality is far more nuanced and hopeful.
The semiconductor industry is not solely defined by nanometre-scale manufacturing; it is a vast and diverse ecosystem where Malaysia holds strategic advantages.
Why Malaysia isn’t out of the semiconductor race
- The future is “more than Moore”
While Moore’s Law has driven semiconductor innovation for decades, we are entering an era where performance is enhanced not just by shrinking transistor sizes, but also by integrating new functionalities.
MEMS and NEMS are high-value semiconductor solutions that power sensors, actuators, and microfluidic systems. These are not dependent on extreme nanoscale fabrication.
Malaysia, through Mimos, Silterra, and other players, has expertise in MEMS technology, positioning the country as a leader in specialty semiconductor solutions.
- Power devices: the backbone of modern electronics
Not all semiconductors need to be tiny. Power electronics require robust and thermally stable chips, often fabricated on 8-inch wafers with 90-500nm nodes, making Malaysia’s semiconductor facilities relevant and competitive.
Advanced materials such as gallium nitride and silicon carbide are revolutionizing power semiconductors for EVs, industrial automation, and renewable energy systems.
- Chip design: Malaysia’s strategic opportunity
The ARM and RISC-V revolution provides an unprecedented opportunity for Malaysia to leap into chip design. ARM’s RM1.2 billion investment is a crucial first step, enabling Malaysian manufacturers to design customised chips for Asean markets.
RISC-V’s open-source architecture presents an even greater long-term opportunity, offering Malaysia a pathway toward semiconductor sovereignty without restrictive licensing agreements.
- AI and quantum computing: the next frontiers
Malaysia has a unique opportunity to lead in AI chip optimisation and edge computing. While we may not manufacture cutting-edge AI chips like Nvidia’s H100, we can develop AI models optimised for edge applications, IoT devices, and automation — sectors where Malaysia is already strong.
Quantum computing, led by Universiti Putra Malaysia and the Quantum Intelligence Centre established by Mimos, represents strategic long-term bets. With early investments, Malaysia can position itself as a regional hub for quantum research and post-quantum cryptography.
Malaysia’s market challenge
While Malaysia has semiconductor design capabilities, one critical issue remains: where will these chips be used? Without a strong local consumer electronics or industrial technology sector, Malaysian firms struggle to scale globally.
Nations like South Korea built their semiconductor dominance by establishing strong local brands (Samsung, LG, Hyundai) that created domestic demand for chips.
Malaysia must develop homegrown electronics brands in consumer tech, EVs, automation, and IoT to serve as a reference market for our semiconductor industry.
The path forward
We cannot afford to be passive observers in the semiconductor race. The world is changing rapidly, and nations that control their semiconductor industries will control their economic futures.
Malaysia already has world-class semiconductor talent, infrastructure, and manufacturing capacity. What we need now is bold leadership, strategic investments, and an integrated market-driven approach.
To those who say Malaysia is “too late” to the game, I say this:
Did Taiwan wait for permission to dominate chip foundries? No.
Did Korea hesitate to build its own electronics empire? No.
Did China give up on semiconductors despite US restrictions? No.
Neither should Malaysia.
Conclusion
Malaysia’s time to rise as a semiconductor powerhouse is now. With strategic vision, coordinated execution, and unwavering determination, we can rise to the challenge and lead in innovation, chip design, and cutting-edge applications.
FAQs
Q: Why is Malaysia’s semiconductor industry critical to its economic future?
A: The semiconductor industry is a vast and diverse ecosystem, and Malaysia has strategic advantages in areas like MEMS and NEMS, power devices, and AI applications.
Q: What are the key areas where Malaysia should focus its efforts?
A: Malaysia should focus on high-value semiconductor solutions, power devices, chip design, AI applications, and quantum computing.
Q: Why is a national semiconductor task force necessary?
A: A high-level task force is necessary to develop a 10-year semiconductor master plan, ensuring alignment between national R&D strategies, talent development, and market-driven commercialisation efforts.
Q: How can Malaysia develop homegrown electronics brands?
A: Malaysia should provide incentives for local companies to develop smart devices, EVs, and IoT products, creating immediate demand for Malaysian-designed chips and establishing credibility in the global market.