Malaysia’s $100bn Plan to Boost Power Fabs and Chiplets

The government of Malaysia has set its sights on attracting a staggering $100 billion of investment in power fabs, advanced chiplet packaging, and leading-edge logic over the next seven years. The ambitious National Semiconductor Strategy (NSS) was unveiled in Malaysia this week at Semicon SouthEast Asia, outlining a three-phase approach to revolutionize the country's semiconductor industry.

Prime Minister Anwar Ibrahim emphasized the importance of semiconductor production for global sustainability, stating, "A robust multinational semiconductor production remains vital for humankind’s survival, particularly in the face of climate action and risk mitigation challenges." Malaysia aims to position itself as a neutral and non-aligned hub for semiconductor manufacturing, offering a secure and resilient global supply chain.

Reflecting on the country's semiconductor history, Ibrahim highlighted Intel's pioneering investment in Malaysia back in 1972, which laid the foundation for a thriving ecosystem. Over the years, Malaysia has attracted a host of multinational companies like AMD, Hitachi, and Micron, while also nurturing homegrown champions such as Inari and Vitrox.

Infineon, a key player in the semiconductor industry, is currently constructing one of the world's largest silicon carbide power fabs in Kulim, further solidifying Malaysia's position in the global semiconductor landscape.

Looking ahead, Malaysia aims to diversify and enhance its semiconductor capabilities, transitioning towards high-end manufacturing, semiconductor design, and advanced packaging. The strategic plan includes fostering collaboration with companies across ASEAN and the global stage, with a focus on attracting leading advanced chip manufacturers to establish operations in Malaysia.