Key Points about the National Semiconductor Strategy (NSS)

Key Points about the National Semiconductor Strategy (NSS)

KUALA LUMPUR: The semiconductor industry in Malaysia began in the 1970s with the entry of multinational companies opening assembly and testing plants. In 1972, Intel opened its first overseas production facility in Malaysia with an investment of USD 1.6 million.

Prime Minister Datuk Seri Anwar Ibrahim, in his speech at the SEMICON Southeast Asia 2024 Expo today, said that half a century has passed, and Malaysia is now ranked as the sixth-largest exporter in the semiconductor industry.

He stated that the government’s vision is to create an ecosystem driven by dynamic Malaysian firms and world-class talent while collaborating with global companies.

Here are the government’s plans through Malaysia’s National Semiconductor Strategy (NSS), announced by the Prime Minister today.

NSS will cover:

Phase 1: Building the Foundation

Leveraging existing capacity and capabilities in the industry to support the modernization of Outsourced Assembly and Testing (OSAT) with steps towards advanced packaging; expanding existing plants in Malaysia and increasing Foreign Direct Investment (FDI).
Phase 2: Moving Forward

Designing and testing advanced memory chips, fabrication, and seeking to integrate purchases.
Phase 3: Innovating

Strengthening support through the development of world-class Malaysian semiconductor design companies and attracting buyers of advanced chips such as Apple, Huawei, and Lenovo.
Five Main Targets in NSS:

Target 1: Attract investments of RM500 billion.

Target 2: Establish at least 10 Malaysian companies in Design and Packaging with revenues between RM1 billion and RM4.7 billion.

Target 3: Position Malaysia as a global research and development (R&D) hub for semiconductors.

Target 4: Train and increase the number of highly skilled engineers to 60,000.

Target 5: Allocate RM25 billion in fiscal support to activate the NSS.

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