Recently, the government has signed an MoU with 5 local companies to help further develop this industry and increase the number of professional workers in the industry. It is expected that the 5 companies could capture 7% share of the global semiconductor market. That said, what should you know about it?
A huge incentive to boost this programme
For your information, the government has provided research and development (R&D) grants worth RM92 million under the Malaysia Science Endowment (MSE) program, and an MoU has been signed with five local semiconductor packaging companies. The companies are SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd and NSW Automation Sdn Bhd.
Moreover, the grant given by the government has also been matched by the local packaging industry with their own grant worth RM93.8 million, making the total value worth approximately RM185.8 million. Apart from research and development of new technologies, this grant will also be utilised to run a 24-month program as a platform to increase the competitiveness of workers and expose them to the latest technologies needed in this industry.
This memorandum of understanding was signed during the SEMICON SEA 2026 event, which took place last week, and demonstrates the government's belief in the development of this industry as one of the pillars of the country's economy.
In fact, with this initiative, the government expects that these five companies will be able to control seven per cent of the global semiconductor chip packaging sector by 2035. Datuk Chang Lih Kang, Minister of Science, Technology and Innovation, said that Malaysia's 50 years of experience in the semiconductor chip development and packaging industry, coupled with its neutral political stance between China and Taiwan, make Malaysia an ideal country for various semiconductor chip manufacturing companies to send components here for assembly.
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