KUALA LUMPUR, May 28 — Malaysia is targeting to attract RM500 billion in investments in the first phase of the National Semiconductor Strategy (NSS), with domestic direct investments (DDI), focusing on integrated circuit design, advanced packaging and manufacturing equipment, Prime Minister Datuk Seri Anwar Ibrahim said.

In his speech at Semicon South-east Asia here, Anwar said that foreign direct investments (FDI) meanwhile, will target water fabrication and manufacturing equipment.

“By phase two, we want to establish at least 10 Malaysian companies in design advanced packaging with revenues between RM1 billion to RM4.7 billion, and at least 100 semiconductor-related companies with revenues close to RM1 billion, creating higher wages for Malaysian workers,” Anwar said.

He added that the government also envisions positioning Malaysia as a global hub for semiconductor research and development (R&D), fostering an ecosystem that integrates world-renowned universities, corporate R&D facilities, and internationally acclaimed centres of excellence.


Anwar said that this strategic endeavour aims to harness the synergistic potential of homegrown Malaysian talent and international experts.

"Phase one involves building on our foundations. In this phase, we will leverage on our industry’s existing capacity and capabilities to support the modernisation of the outsourced semiconductor assembly and test with moves towards advanced packaging, grow existing fabs in Malaysia and pursue FDI on expanding capacity in trailing edge chips, particularly power chips, as well as develop local chip design champions.

"Phase two is all about moving to the frontier. We will pursue cutting-edge logic and memory chip design, fabrication, and testing and look to integrate the purchasers of these chips. Once phase one is implemented, more leading advanced chip manufacturers will be attracted to our shores. This is where our local design champions can be easily integrated into the ecosystem of these advanced fab companies," Anwar added.


He said that phase three will continue "doubling down" by supporting the development of world-class Malaysian semiconductor design, advanced packaging and manufacturing equipment firms, while attracting buyers of advanced chips such as Apple, Huawei, Lenovo, and other cutting-edge companies to pursue advanced manufacturing in Malaysia.

Anwar said that a robust multinational semiconductor production sector remains vital for mankind’s survival, "particularly as we are running out of time in our climate action and risk mitigation".

"To stay flexible and agile, the NSS will be a living document, evolving as needed, but we remain steadfast in our aspiration to make Malaysia a major global player in accessible technology for all, powered by our semiconductor industry," he added.