Malaysia is forecast to become a semiconductor hub in Asia thanks to its significant role in the country’s economy, says Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

As it stands, semiconductor exports make up 40% of Malaysia’s total exports, the minister commented. “This makes Malaysia the sixth largest exporter in this sector,” he said during the launch of Semicon Southeast Asia 2024 at the Malaysia International Trade and Exhibition Centre. 

Tengku Zafrul went on to add that global demand for semiconductors is anticipated to reach $1 trillion (RM4.69 trillion) by 2030, with continuous growth expected.

“Malaysia aims to leverage its 50-year presence in this industry and advance to the next level of value by capitalising on advancements in artificial intelligence (AI) technology and everyday applications,” he said.

The minister went on to say that Malaysia has a robust track record within the semiconductor sector. “For more than five decades, our country has built a strong legacy as a key player in the Asean semiconductor circuit, while playing an important role in the global electronics supply chain,” he said.

Furthermore, he said this strategic arrangement has given the country’s electrical and electronics industry, particularly the semiconductor sector, access to a global market of over four billion people.

The minister added that Malaysia is increasingly recognised as a crucial Southeast Asian nation in securing the global supply chain for the industry, thereby ensuring the continued growth of the semiconductor sector's strategic importance.

“The increasing global dependency on semiconductors has stimulated research and manufacturing in Southeast Asia,” he stated.

Additionally, SEMI CEO Ajit Manocha noted that Southeast Asia is strategically positioned to bolster the semiconductor industry's remarkable expansion, fuelled partly by transformative innovations such as GenAl.

“Events like Semicon Southeast Asia play a crucial role in fostering dialogue, partnership, and innovation. The growth in participation this year reflects the growing relevance of this event and the collective commitment to advancing the semiconductor ecosystem to Southeast Asia and beyond,” the CEO said.