Malaysia's Semiconductor Industry: Top 30 Companies and Their Challenges

The Malaysian semiconductor industry boasts a rich history of expertise spanning five decades, making it a cornerstone of the nation’s economic success, contributing a significant 30% to GDP. Malaysia hosts a dynamic semiconductor ecosystem that encompasses multinational giants alongside indigenous firms. These companies manufacture a diverse array of semiconductor products, ranging from microprocessors and memory chips to sensors. Key players in Malaysia's semiconductor landscape include global leaders such as Intel, Infineon Technologies, Broadcom, and Western Digital.

The Malaysian government actively fosters the growth of this industry through targeted initiatives. These efforts include substantial investments in research and development, strategic tax incentives, and the promotion of comprehensive skills development programs. By leveraging its skilled workforce, favorable governmental policies, and strategic location in Southeast Asia, Malaysia remains highly attractive for further investment in the semiconductor sector.

 

What is a Semiconductor?

A semiconductor is a material that exhibits properties of both insulators and conductors, hence the name "semi-conductor." Typically made of silicon, semiconductors conduct electricity more efficiently than insulators like glass, but less so than pure conductors such as copper or aluminum. The electrical conductivity and other properties of semiconductors can be precisely modified through a process called doping, which involves adding impurities to meet the specific requirements of various electronic components.

Commonly referred to as semis or chips, semiconductors are integral to a vast array of products, including computers, smartphones, appliances, gaming hardware, and medical equipment. You may also interested semiconfuctor jobs on Maukerja and Ricebowl job site. 

 

List of Semiconductor Companies in Malaysia

 

1. Intel Malaysia:

Intel is one of the largest semiconductor companies in the world and has a significant presence in Malaysia. It has multiple manufacturing and assembly test facilities in Penang, Kulim, and Kuala Lumpur.

 

2. Advanced Micro Devices (AMD) Malaysia:

AMD is a global semiconductor company known for its CPUs and GPUs. It operates a facility in Penang, Malaysia, which is involved in assembly, test, and supply chain management.

 

3. Infineon Technologies Malaysia:

Infineon is a leading semiconductor company specializing in power semiconductors, automotive electronics, and security solutions. It has several manufacturing sites in Melaka, Kulim, and Batu Berendam.

 

4. Broadcom Malaysia:

Broadcom is a multinational semiconductor company known for its networking and connectivity solutions. It has manufacturing facilities in Penang and Melaka, producing a wide range of semiconductor products.

 

5. NXP Semiconductors Malaysia:

NXP Semiconductors is a global semiconductor manufacturer that focuses on automotive, industrial, and Internet of Things (IoT) applications. It operates facilities in Melaka and Seremban.

 

6. Renesas Semiconductor Malaysia:

Renesas is a major semiconductor supplier specializing in microcontrollers and system-on-chips (SoCs) for various industries. It has a manufacturing facility in Batu Berendam, Melaka.

 

7. SilTerra Malaysia:

SilTerra is a semiconductor wafer foundry providing advanced technology and manufacturing services. It operates a facility in Kulim, Kedah, offering fabrication services for integrated circuits (ICs).

 

8. Inari Technology:

Inari Technology is a Malaysian semiconductor company specializing in optoelectronic devices, radio-frequency (RF) components, and semiconductor testing services. It has facilities in Penang and Johor.

 

9. ON Semiconductor Malaysia:

ON Semiconductor is a global supplier of power management and sensor solutions. It has a manufacturing facility in Seremban, Negeri Sembilan, producing semiconductor components for various applications.

 

10. Unisem (M) Berhad:

Unisem is a semiconductor assembly and test services provider. It operates multiple facilities in Ipoh, Perak, and Batam, Indonesia, offering a wide range of packaging and testing solutions.

 

11. Globetronics Technology:

Globetronics is involved in the manufacturing of semiconductor products and precision electronic components. Its facility is located in Melaka and specializes in sensor-based devices, optoelectronics, and micro-electromechanical systems (MEMS).

 

12. Inari Amertron Berhad:

Inari Amertron is an integrated semiconductor company that focuses on outsourced semiconductor assembly and test services. It has manufacturing facilities in Batu Kawan, Penang, and Senawang, Negeri Sembilan.

 

13. Malaysian Pacific Industries Berhad (MPI):

MPI is a leading semiconductor company involved in assembly, testing, and manufacturing solutions. It operates multiple facilities in Penang and Muar, Johor.

 

14. Altera Corporation (Malaysia):

Altera Corporation, now part of Intel, specializes in programmable logic devices and related development tools. It has a facility in Penang, Malaysia, engaged in manufacturing and assembly.

 

15. STMicroelectronics Malaysia:

STMicroelectronics is a global semiconductor company that develops and manufactures a wide range of integrated circuits and solutions. It has a manufacturing facility in Muar, Johor.

 

16. Inari Technology Sdn Bhd:

Inari Technology is a Malaysian semiconductor company specializing in radio-frequency (RF) and optoelectronic products. They provide solutions for wireless communication, fiber optics, and sensor applications.

 

17. Dynacraft Industries:

Dynacraft Industries is a semiconductor company based in Penang, Malaysia. They specialize in the manufacturing and assembly of semiconductor products, including integrated circuits and electronic components.

 

18. Elpiscience Malaysia:

Elpiscience Malaysia is a semiconductor company that focuses on the research, development, and manufacturing of power semiconductor devices. They provide solutions for energy-efficient applications in various industries.

 

19. UMC Semiconductor (Malaysia):

UMC Semiconductor is a global semiconductor foundry that offers advanced wafer fabrication services. They have a facility in Bayan Lepas, Penang, providing manufacturing and assembly services for integrated circuits.

 

20. Global Mixed-mode Technology (GMT):

GMT is a semiconductor company specializing in mixed-signal integrated circuits. They design and manufacture a wide range of analog and digital products for consumer electronics and automotive applications.

 

21. E&E Manufacturing Sdn Bhd:

E&E Manufacturing is a semiconductor assembly and test service provider based in Penang, Malaysia. They offer turnkey solutions for semiconductor packaging and testing, catering to various industries.

 

22. Silterra Malaysia Sdn Bhd:

Silterra Malaysia is a semiconductor wafer foundry that provides fabrication services for integrated circuits. They focus on advanced process technologies and offer solutions for automotive, consumer, and communication applications.

 

23. VIS Technologies Sdn Bhd:

VIS Technologies is a semiconductor assembly and test service provider with a facility in Melaka, Malaysia. They specialize in the manufacturing and testing of semiconductor products, including integrated circuits and sensors.

 

24. Globetron Malaysia:

Globetron Malaysia is a semiconductor company specializing in the design, development, and manufacturing of electronic components, including connectors, switches, and sensors. They have a manufacturing facility in Penang.

 

25. Aemulus Corporation:

Aemulus Corporation is a Malaysian semiconductor company that designs and manufactures test and measurement equipment for the semiconductor industry. They provide solutions for the testing of mixed-signal, radio-frequency (RF), and digital integrated circuits.

 

26. Jabil Circuit Malaysia:

Jabil Circuit is a global electronics manufacturing services company with a facility in Penang, Malaysia. They offer a range of services, including printed circuit board assembly, system integration, and semiconductor packaging.

 

27. Globetronics Precision Optics:

Globetronics Precision Optics is a subsidiary of Globetronics Technology. They specialize in the manufacturing of precision optics components and modules for various applications, including cameras, sensors, and displays.

 

28. SAMCO Malaysia:

SAMCO is a semiconductor equipment manufacturer and service provider based in Malaysia. They offer a range of equipment for thin film deposition, plasma etching, and wafer bonding, catering to the semiconductor industry.

 

29. FPG Technology:

FPG Technology is a Malaysian semiconductor company that focuses on the design and development of advanced packaging solutions for integrated circuits. They offer a wide range of packaging technologies, including flip chip and wafer-level packaging.

 

30. ViTrox Technologies:

ViTrox Technologies is a Malaysian semiconductor company specializing in automated vision inspection systems for the electronics industry. They provide advanced inspection solutions for semiconductor packaging, printed circuit boards, and surface mount technology.

 

Challenges Facing Malaysia's Semiconductor Industry

The Malaysian semiconductor industry is facing several significant challenges despite its importance in the global supply chain and local economy.

• Global Competition and Supply Chain Issues: Intense competition from countries like Taiwan, South Korea, and China, combined with global supply chain disruptions, has impacted production and increased costs.
• Technological Advancements and Talent Shortage: Rapid technological advancements require continuous innovation. However, there's a shortage of skilled professionals in Malaysia, creating a gap between industry needs and available talent.
• Government Support and Infrastructure: Although the government provides some support, enhanced infrastructure and more comprehensive policies are needed to foster collaboration and sustain growth.
• Sustainability and Environmental Concerns: The resource-intensive nature of semiconductor manufacturing raises environmental concerns, necessitating the adoption of greener practices.

 

Strategic Focus Areas

To navigate these challenges, Malaysia's semiconductor industry must focus on several key areas:

• Enhancing R&D Capabilities: Increasing investment in research and development to drive innovation and stay competitive.
• Talent Development: Expanding educational programs and partnerships to cultivate a skilled workforce that meets industry demands.
• Strengthening Supply Chains: Building more resilient and diversified supply chains to mitigate the impact of global disruptions.
• Sustainable Practices: Adopting environmentally friendly manufacturing processes to reduce the industry's ecological footprint.

 

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