In a surprising scenario, Malaysia has emerged as the unlikely winner of the US-China Chip War. How did this happen? How did Malaysia get involved in this tech tussle? You might want to read until the end.
For your information, China have set up their manufacturing companies in Penang. Chinese company such as the Fengshi Metal Technology promised salaries 30 per cent above the market rate and other “unique opportunities” including overseas travel and free meals. That led to increased working opportunities in Penang and drove up the state’s yearly capita.
In addition, other nations such as Korea, Japan and other Western countries have made Malaysia (Especially Penang) its leading destination for investment. According to Financial Times, Malaysia has a 50-year history in the “back end” of the semiconductor manufacturing supply chain: packaging, assembling and testing chips.
Moreover, the country also has ambitions to move up to the front end of a $520bn global industry that powers everything from televisions to smartphones and electric vehicles. That includes higher value activities such as wafer fabrication and integrated circuit design. Marcel Wismer, Kemikon’s chief executive says:
“It’s a rush. It’s not only Chinese companies [setting up in Penang]. It’s Korean, it’s Japanese, and it is western,”
Overall, this is a war that Malaysia won’t mind being involved. After all, it leads to more benefits for the Penangites and the country as a whole. Hopefully, we will see more foreign investments in other states nationwide.
What are your thoughts about this news? Stay tuned for more news and updates like this at TechNave!
COMMENTS