Malaysia Needs To Focus On Developing Semiconductor Design Capabilities - Rafizi

PUCHONG, Aug 6 (Bernama) -- Malaysia needs to focus on developing its own semiconductor design capabilities, lessening dependence on imported chips moving forward, said Economy Minister Rafizi Ramli.

According to Rafizi, the federal government’s strategic direction is to enhance the entire semiconductor ecosystem, covering both upstream and downstream sectors, particularly emphasising original design manufacturers (ODM).

“The interest in data centres will continuously drive the demand for semiconductors, and this presents opportunities because there is demand for chips. 

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“As this ecosystem takes place, data centres in Malaysia will begin to consider “Made by Malaysia” chips. That is the consideration the federal government is looking for,” he said at the launch of the Malaysia Semiconductor IC Design Park in Puchong here, today.

Rafizi said the government already has the facilities for mainstream assembly and testing, and the launch of the Malaysia Semiconductor IC Design Park is a perfect mechanism for multiplying the number of IC design companies as much as possible.

“So the next few steps that the federal government is taking will be adding to the ecosystem and to cover all (areas) from upstream to downstream,” he said.

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Encouraging local involvement in product design, prototyping, and production

Meanwhile, Selangor Menteri Besar Datuk Seri Amirudin Shari said the IC design park will be equipped with common public service tools and facilities, including affordable electronic design automation tools, servers, IP, multi-project wafer services, and training programs. 

“The park’s primary goal is to promote original design manufacturing, encouraging local involvement in product design, prototyping, and production.

“This project is not just about infrastructure; it is about creating opportunities and driving growth. The Malaysia Semiconductor Accelerator and the Dana Penjana VC Fund are integral components of our strategy to foster innovation and entrepreneurship,” he said.

By providing critical resources and funding, Amirudin said the state government aims to accelerate the growth of startups and established companies, propelling them to new heights of success.

The menteri besar said the park will be able to house more than 400 IC Design eEngineers and has already been taken up by eight local and international firms from MaiStorage, Skyechip, Weeroc, and AppAsia.

“Other partners include Bluechip VC, Cadence Design System, Synopsys, Siemens EDA, Keysight, and ARM,” he said.

Amirudin said the Greater Klang Valley Semiconductor Corridor offers a vibrant ecosystem of industry leaders, research institutions, and supply chain partners. 

“This strategic location enhances our appeal as a premier destination for semiconductor companies, offering unparalleled opportunities for collaboration and growth. As we launch this ambitious project, Selangor does not aim to be a bit-part player in the semiconductor space. 

“We must have a comparative advantage and move up the value chain. I intend to see future semiconductors with the label, ‘Made in Malaysia, Designed in Selangor’,” he said.

Uplifting talent capacity and nurturing experts in IC design

Amirudin said Selangor aims to equip its workforce with the skills and knowledge necessary to excel in this high-tech industry through partnerships with leading educational institutions such as the Malaysia Advanced Semiconductor and AI Institute (MASAI) and the Selangor Digital School (SDS).

“Our training programmes will nurture thousands of students, preparing them for the challenges and opportunities of the future,” he said.

On the other hand, Amirudin said he believes the battle between the two global giants, the US and China, will not only be about who has more military muscle but who has a bigger role and more intellectual properties in the digital world. 

“It will be a technological battle, and semiconductors will be the heartbeat of the global economy moving forward. In Selangor, we have to prepare for any and all eventualities, and we must uplift our talent capacity and nurture experts in the field of IC design,” he added.

The Malaysia Semiconductor IC Design Park is actively recruiting skilled candidates with degrees in Electrical & Electronics Engineering, Mechanical Engineering, Mechatronics, and Computer Science, offering highly competitive salaries. 

Entry-level positions start between RM5,000 and RM6,000 for fresh graduates, while individuals with a Master’s degree or extensive industry experience can earn up to RM7,000.

-- BERNAMA