JANUARY 4 — Malaysia stands at a pivotal moment. A crucial player in the global semiconductor assembly and test (OSAT) landscape, the nation now eyes transforming into a comprehensive semiconductor hub encompassing design, advanced manufacturing, and R&D. Fuelled by the insatiable demand for chips powering AI, electric vehicles, and Industry 4.0, this opportunity is immense. Yet, a critical bottleneck threatens to derail this ambition, a crippling shortage of highly skilled talent. Malaysian universities hold the keys to unlocking this potential, but only if they adapt with speed and purpose.
Malaysia boasts undeniable advantages: strategic location, established infrastructure in Penang and Kulim, a strong industrial base, and supportive government initiatives like the National Semiconductor Strategy (NSS). Global giants like Intel, Infineon, and Bosch are pouring billions into expanding advanced manufacturing here. However, these new fabs and design centres require engineers and technicians not just for assembly, but for complex areas like advanced process node engineering, chip design & verification, compound semiconductors for power electronics, and heterogenous integration & advanced packaging, to name some. Also, semiconductor equipment engineering. This involves maintaining and optimising highly complex machinery, leveraging AI for yield optimisation and predictive maintenance. And developing and characterising next-generation substrates and chemicals.
How can universities seize the semiconductor moment? Radical curriculum overhaul and specialisation is needed. Universities must rapidly develop specialised undergraduate and postgraduate programmes co-created with industry. These include Semiconductor Process Engineering, IC Design, and Advanced Equipment Maintenance. Also introduce modules on cutting-edge areas like photonics integration and quantum computing basics relevant to semiconductors. Create industry-led labs with chipmakers funding and equipping cutting-edge cleanroom simulation labs or design centres on campus. Mandatory co-op, extended (6-12 month) industry placements integrated into degree programmes, is needed. Attract seasoned industry experts as adjunct professors or full-time faculty. Facilitate sabbaticals for academics within companies.
Final-year projects should be defined and mentored by industry partners, tackling genuine production or design challenges. And hubs for lifelong learning, offering intensive micro-credentials, professional diplomas, and modular courses tailored for existing industry workforce. Next is upskilling engineers from OSAT towards advanced manufacturing or design roles. And reskilling physics, materials science, or general engineering graduates into semiconductor specialisations. World-class infrastructure is crucial. Teaching semiconductor fabrication without access to even basic cleanroom facilities or advanced design software is like teaching swimming without water. Significant investment — from government, industry partnerships, and university endowments — is needed to build and maintain state-of-the-art teaching and research labs that mirror industrial environments.
Transforming universities won’t be easy. Equipping labs with even scaled-down versions of multi-million-dollar semiconductor tools is astronomically expensive. Sustaining this infrastructure and keeping pace with rapid technological obsolescence requires massive, continuous investment. On the faculty side, attracting and retaining academics with deep, current industry experience in highly specialised, competitive fields is difficult. Industry salaries often dwarf academic pay scales. Universities need flexibility in hiring, remuneration, and workload models to compete. University curriculum approval processes are often slow. Keeping pace with the blistering speed of semiconductor innovation requires radical agility — modular courses, rapid updates based on industry feedback — that clashes with traditional academic governance.
While companies complain about skills, truly committing resources to deep, long-term partnerships with universities remains inconsistent. Building trust and aligning goals is crucial but time-consuming. Malaysia isn’t just competing locally. It’s in a fierce global battle for semiconductor talent. Graduates with sought-after skills (especially in design) are prime targets for recruiters from Singapore, Taiwan, the US, and Europe. Retaining top graduates requires competitive local salaries, challenging R&D opportunities, and clear career progression within Malaysia. Engineering talent is often drawn to software or broader technology roles. Elevating the prestige and visibility of semiconductor careers among students is therefore vital.
Bridging the semiconductor skills gap is not solely the responsibility of universities. It demands a national, coordinated effort. Government must provide targeted funding for infrastructure and specialised programmes, streamline visa processes for critical international experts, offer competitive research grants in semiconductor tech, and implement policies to incentivise industry R&D investment within universities. Industry on the other hand needs to invest deeply in long-term partnerships: funding labs, co-developing curricula, providing placements, and supporting continuous upskilling. Universities must embrace radical change. They need to champion semiconductor careers.
Malaysia’s semiconductor ambitions are achievable. But without a skilled workforce, the most advanced fabs will remain underutilised, and the dream of moving up the value chain will stall. Universities are the crucible where this essential talent must be forged. By transforming themselves with urgency, focus, and deep industry synergy, they can power Malaysia’s silicon surge and secure its place at the forefront of the global digital economy. The time for incremental change is over; the semiconductor clock is ticking.
* The author is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an Adjunct Professor at the Ungku Aziz Centre for Development Studies, Universiti Malaya. He can be reached at a[email protected].
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
