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Will Malaysia Live Up To Its Ambition Of 15% Semiconductor Market Share?


Will Malaysia Live Up To Its Ambition Of 15% Semiconductor Market Share?

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi at SEMICON Southeast Asia 2023 said Malaysia ranked among the top 10 global hubs for semiconductors and electronics. Overall the country ranks as the seventh largest exporter of semiconductors in the world, with a market share of 7%.

The Sun reported DPM Ahmad Zahid Malaysia’s attractiveness as a global investment centre has attracted many high-tech companies from around the world to set up their operations here. The government plans to further strengthen Malaysia’s semiconductor ecosystem in the hope of achieving a 15% market share in the semiconductor assembly, test and packaging activities by 2030, compared with 13% currently.

“The government is committed to working with industry stakeholders to map out the entire supply chain, and to develop targeted interventions that support the industry and drive growth. By working together, the country can achieve its shared goals and ensure the long-term success of the industry and the nation. This hopefully will lead to Malaysia emerging as the preferred digital hub in Southeast Asia a very real possibility one day,“ he added.

Taking A Step Back

However, revealed a very different picture. In 2022, Samsung (Korea) the market leader position within the global semiconductor industry with a market share of 10.9%. Intel ranked second among vendors, occupying a market share of 9.7%.

Among the biggest semiconductor companies, a large proportion are based in the United States. In addition to Intel, notable U.S. semiconductor vendors include Micron Technology, Qualcomm, and Broadcom.

As a whole, American semiconductor companies account for around 50% of the global market, ahead of several Asia-Pacific countries such as South Korea, Japan, Taiwan, and China.

The global semiconductor industry develops components for use across a range of applications including for smartphones, personal computers (PCs), and data centers. In addition to these products, demand for automotive semiconductors is set to grow as cars become smarter and more connected.

However, a semiconductor shortage at the start of 2021 that last through until 2022 as well affected a number of major carmakers and suppliers, resulting in a slowdown in vehicle production. While this is not to throw shade at a political figure’s wishlist, one has to remain grounded about the reality of things.

Though sanctions self-imposed or otherwise can produce nuggets of opportunities, it will take a while before any nation has both the infrastructure and the resources to catch up with the already tight competition for pole position.


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