The government has set a target to establish 10 Malaysian companies in advanced design and packaging with annual revenues of US$1 billion each, alongside 100 high-value local semiconductor-related firms generating RM1 billion annually, under the National Semiconductor Strategy (NSS).
Minister of Investment, Trade and Industry told the Dewan Negara that the strategy is aimed at reducing dependence on foreign-owned semiconductor companies while nurturing local champions with the potential to emerge as multinational corporations.
Malaysia, which has been part of the global semiconductor supply chain for more than 50 years, is currently recognised for outsourced testing and packaging activities. The government’s approach under the NSS is to continue attracting high-technology foreign investments, such as advanced packaging, while creating an environment where local firms can move up the value chain.
Between early 2024 and the first quarter of 2025, the NSS recorded progress including training for 4,557 engineers and technical staff, identifying more than 23,000 potential job opportunities, securing RM52 billion in investments (RM2.1 billion domestic and RM49.9 billion foreign), and the establishment of five local integrated circuit design firms.
The minister noted that Malaysia’s strengths remain in its strategic location, developed infrastructure and skilled workforce, all of which continue to attract multinational corporations. However, the shift in policy focus is on enabling Malaysian companies to grow beyond vendor status to become leading technology players in their own right.
The government, through the Malaysian Investment Development Authority (MIDA), is also identifying potential local firms across the supply chain, from chemicals and materials to machinery, wafer fabrication, testing and integrated circuit design, to strengthen the domestic ecosystem.
NSS is positioned as a cornerstone policy to reinforce Malaysia’s role as an indispensable middle power in the global semiconductor supply chain.
