Malaysia is making significant strides in the electrical and electronics (E&E) sector with its National Semiconductor Strategy (NSS), which aims to generate RM100 billion annually from semiconductor and E&E exports. Central to achieving this target is Selangor’s commitment to contributing up to 30% of the NSS goal through the development of a robust semiconductor ecosystem in the Klang Valley. This aligns with broader national efforts to position Malaysia as a regional leader in semiconductor manufacturing, design, and exports.
The NSS is designed to drive large-scale transformation in the Malaysian semiconductor landscape by attracting both local and foreign investments. It seeks to secure RM500 billion in investments over the next several years, significantly boosting the semiconductor and E&E sectors. The strategy is expected to catalyse the growth of up to 100 semiconductor supply chain companies and establish 10 integrated circuit (IC) design and advanced packaging companies, each generating over RM1 billion in annual revenue. This ambitious agenda is intended to elevate Malaysia’s position in the global semiconductor market and promote economic resilience through technological advancements and export growth.
In alignment with the NSS, Selangor has already emerged as a strategic hub for semiconductor activities. The state has witnessed an influx of multinational semiconductor firms from key global markets such as China, Japan, Korea, India, Taiwan, and the United States. These companies are setting up operations and expanding their footprint in the state, demonstrating confidence in Malaysia’s strategic initiatives and the Klang Valley’s potential as a semiconductor corridor.
The Klang Valley Semiconductor Corridor is poised to host approximately 40 IC design and test packaging companies, further solidifying Selangor’s pivotal role in the NSS. The Selangor state government, through its investment, trade, and mobility initiatives, has implemented policies and formed strategic partnerships to support the growth of these industries. Agencies like the Selangor Information Technology and Digital Economy Corporation (Sidec) are instrumental in creating an environment conducive to innovation and investment. By fostering collaboration between government bodies, academic institutions, and industry players, Selangor aims to ensure the long-term success of its semiconductor and E&E industries.
The NSS also emphasises the importance of talent development to sustain the industry’s growth. The strategy includes initiatives aimed at training 60,000 semiconductor professionals, with a focus on producing skilled talent in IC design, advanced testing, and packaging. Facilities like the Malaysia IC Design Park and the Advanced Semicon Academy are expected to play key roles in achieving these training goals, equipping the next generation of professionals with the expertise required to support high-growth areas in the sector. This workforce development effort is critical to maintaining Malaysia’s competitive edge in the global semiconductor supply chain.
The recent Malaysia Semiconductor Recruitment Day, organised by Sidec, underscores the government’s proactive approach to building a skilled workforce. The event attracted over 2,000 students from 20 universities across Malaysia and featured participation from 25 semiconductor companies offering job opportunities. With engineering roles in high demand, salary offerings ranged between RM5,000 and RM6,000, reflecting the sector’s need for highly skilled professionals. The event marked an important step in bridging the gap between academic institutions and industry requirements, promoting greater alignment between educational outcomes and market needs.
Beyond immediate job creation, the NSS is expected to create a broader economic impact by supporting the development of a comprehensive semiconductor ecosystem. This includes the establishment of advanced research and development facilities, innovation hubs, and specialised training centres. Such developments are projected to enhance Malaysia’s capacity for producing high-value semiconductor products and services, positioning the country as a key player in the global E&E supply chain.
