PUCHONG: Malaysia is making significant strides in developing its own semiconductor design capabilities, reducing reliance on imported chips.

Economy Minister Rafizi Ramli highlighted the federal government’s strategic initiative to bolster the entire semiconductor ecosystem. The plan encompasses upstream and downstream sectors, with a particular focus on enhancing the role of original design manufacturers (ODM).

“The chips’ data racks require ODM, so the federal government is looking at the overall ecosystem to complete it. We are going to have the federal agencies go down and work directly with the key players,” Rafizi told reporters at the launch of Malaysia Semiconductor IC Design Park today.

Aiming to transition from “Made in Malaysia” to “Made by Malaysia”, Malaysia Semiconductor IC Design Park, in partnership with the federal government, international semiconductor companies and venture capitalists, seeks to establish Malaysia as a formidable player in the global IC (integrated circuit) design industry.

Additionally, the launch of Malaysian Semiconductor IC Design Park sets the stage for the country to become a high-tech semiconductor hub, as this achievement is a notable success of the KL20 Initiative announced in April.

Among those who attended the launch at Puchong Financial Corporate Centre were Selangor Menteri Besar Datuk Seri Amirudin Shari and Selangor exco for investment, trade and mobility Ng Sze Han.

Rafizi expressed Malaysia’s ambition to become a significant force in the global IC design sector.

“This strategic initiative is intended to capitalise on Malaysia’s technological strengths and resources, fostering innovation and enhancing the nation’s standing in high-tech manufacturing and design,“ he said in his speech.

No single nation or region could claim complete control over the entire semiconductor supply chain, as no country possesses expertise in every segment of the value chain, Rafizi said.

“For example, the equipment, materials, electronic design automation, and integrated device manufacturer sectors are divided among the United States, Europe and other parts of the world. Meanwhile, China and Taiwan hold significant shares in fabless, foundries, and outsourced semiconductor assembly and test services.”

Rafizi said this presents an opportunity for Malaysia as it delves into different segments of the value chain, such as IC design, advanced packaging, and advanced equipment.

“A globally dispersed value chain offers a genuine opportunity for established semiconductor ecosystems like Malaysia to compete, as we are not starting from scratch and are not solely competing with mature ecosystems dominating the space,“ he added.

Amirudin highlighted the critical role semiconductors will play in the future global economy.

“I believe the contest between the two global giants, the United States and China, will not only be about military prowess but also about intellectual property and influence in the digital realm. It will be a technological battle.

“In Selangor, we must prepare for all eventualities and enhance our talent pool, nurturing experts in IC design,“ he said.

Selangor Information Technology and Digital Economy Corporation (Sidec) CEO Yong Kai Ping said Malaysia Semiconductor IC Design Park is actively recruiting skilled candidates with degrees in electrical and electronics engineering, mechanical engineering, mechatronics, and computer science and is offering highly competitive salaries.

“Entry-level positions start between RM5,000 and RM6,000 for fresh graduates, while individuals with a master’s degree or extensive industry experience can earn up to RM7,000,” he added.

Furthermore, Sidec is assisting Malaysian and international IC companies in recruiting experienced engineers with four to eight years of experience. These engineers will play a pivotal role in leading the expansion of these companies within Selangor IC Design Park.