Malaysia’s semiconductor industry needs to diversify and move beyond its reliance on multinational corporations and manufacturing capabilities to maintain its position in the global market, especially amid potential disruptions, said Economy Minister Rafizi Ramli.
In his speech at the Malaysia Semiconductor Recruitment Day 2024, Rafizi emphasized the importance of creating a more dynamic ecosystem that includes start-ups, innovative tech pioneers, and greater involvement from venture capital and private equity (PE) firms to drive industry growth.
“It is clear that Malaysia holds an attractive position in the global semiconductor and artificial intelligence sectors. However, this competitive environment requires continuous innovation and value chain progression,” he said, referencing the growing trend of China+1 strategies and the de-risking of global supply chains.
Rafizi noted that transitioning from back-end processes, such as assembly and testing, to front-end operations like chip design is key for Malaysia to move up the value chain.
“When it comes to integrated circuit (IC) design, we’re talking about innovation, research and development, and new funding models that attract start-ups and individuals with different risk profiles,” Rafizi added. This transformation will require support from venture capital and private equity to succeed.
Growing Demand for Engineers and High-Skilled Professionals
Rafizi highlighted the industry’s growing demand for engineers, estimating that 60,000 engineers will be needed as the semiconductor industry evolves. To meet this demand, government agencies, private sectors, and universities are working together to ensure a steady pipeline of skilled talent.
Malaysia’s electrical and electronic (E&E) sector already contributes 8% to the country’s GDP, amounting to approximately RM143 billion annually. This achievement is built on decades of investment in shoring up Malaysia’s position within the global semiconductor supply chain.
Rafizi was also pleased to announce that within just five months, seven firms had joined the IC Design Park in Puchong, creating about 600 jobs in front-end chip design. The goal is to attract 15 more foreign companies to the park, with the ambition of onboarding 20,000 high-skilled professionals.
Semiconductor Recruitment Day 2024
The Semiconductor Recruitment Day 2024, organized by the Selangor Information Technology and Digital Economy Corporation (Sidec) and the Malaysia Advanced Semiconductor Academy, aims to connect over 2,000 graduates with top industry players.
Participating companies include NXP, Renesas, Infineon, Inari Amertron, and STMicroelectronics, among others. These companies are actively hiring for roles such as RTL design engineers, analog circuit design engineers, and layout design engineers, with starting salaries for entry-level engineers set at RM5,000.
By fostering a culture of innovation, start-ups, and high-tech ventures, Malaysia aims to solidify its position as a major player in the global semiconductor industry and ensure long-term growth and competitiveness.
