KUALA LUMPUR, April 1 (Bernama) — The Malaysia Semiconductor Industry Association (MSIA) will visit the Netherlands to woo Dutch semiconductor companies to invest in Malaysia, while many Chinese firms are keen to relocate here.
Semiconductor firms relocating overseas are considering Malaysia as their preferred investment destination as every company is preparing for future growth, driven by the phenomenal increase in the usage of artificial intelligence (AI) in semiconductor chips,
MSIA president Datuk Seri Wong Siew Hai said the mission to the Netherlands follows a high energy dialogue recently between the association and potential Dutch investors who were exploring business opportunities in the semiconductor sector in the Asia-Pacific region.
“We are now trying to make a trip to the Netherlands and convince them to come here. This is purely an industry initiative,” he said.
“When we see an opportunity like this, it is important to talk to them and tell them the attributes we have in Malaysia, more so since the companies are of high value which will strengthen our ecosystem,” he told Bernama news agency.
The planned visit comes as Dutch firm Neways, a global innovator in mission-critical technology for leading semiconductor, connectivity and smart mobility companies, set up a new state-of-the-art manufacturing facility in Klang with production to start in the fourth quarter of 2024.
Wong also revealed that a lot of Chinese companies “are coming here” to overcome disruptions to their production and exports and avoid US tariffs following the US-China trade war.
As for companies preparing for future growth, he said semiconductor revenue is projected to increase to a staggering US$1 trillion (US$1=RM4.7) by 2030 compared with US$575 billion presently.
“This is driven by the phenomenal growth in the use of semiconductors in every aspect of our lives,” he said.
AI is the new buzzword whereby in Industry 4.0 and smart automation, they all use computers which translates to greater demand for integrated circuit (IC) and semiconductor chips.
There is now widespread customer applications such as in cars and phones, which require enhanced features in semiconductor chips enabling cloud computing and data sharing.
“Every time you run out of memory you go to cloud computing and this is driving the use of semiconductors,” he said.
US companies are coming out of China and looking to relocate while Chinese companies unable to ship to the US due to Washington citing “national security” concerns are also wanting to move abroad to avoid American tariffs.
“Different people need different countries and different solutions, so Malaysia is an ideal location as it can undertake assembly tests as well as IC design.
Malaysia, he said, should capitalise on this and the timing now is perfect due to the geopolitical tension between the US and China.
