TECH - Can China-US Tensions Propel This Country With A Rich Semiconductor Heritage As The Next Chip Superpower? | Benzinga
In the middle of an escalating U.S.-China tech war, Malaysia has become a significant hub for semiconductor manufacturing, attracting major global players.
What Happened: As the U.S.-China tech war intensifies, Malaysia has emerged as a critical location for semiconductor manufacturing. The country’s well-established infrastructure and skilled labor force have made it an attractive destination for global chip firms, reported CNBC.
Malaysia’s expertise in the “back end” of the semiconductor manufacturing process, including assembly, testing, and packaging, has been a key factor in its growing importance. Major chip firms, including Intel Corp (NASDAQ:INTC), GlobalFoundries, and Infineon, have made significant investments in Malaysia.
Intel, for instance, has invested over $7 billion in a chip packaging and testing factory in Malaysia, with production set to commence in 2024. GlobalFoundries has also established a hub in Penang, while Infineon is set to build a third wafer fabrication module in Kulim.
"Our decision to invest in Malaysia is rooted in its diverse talent pool, well-established infrastructure, and robust supply chain," said Aik Kean Chong, Intel Malaysia's managing director, according to the report.
According to the Malaysian Investment Development Authority, Malaysia’s share of the global market for chip packaging, assembly, and testing services stands at 13%. The country’s semiconductor exports ...