Taiwan Looks To Deepen Data Centre, Robotics Collaboration With Malaysia

By Abdul Hamid A Rahman

KUALA LUMPUR, May 6 (Bernama) -- Taiwan is looking to strengthen collaboration with Malaysia in the semiconductor and smart manufacturing sectors, particularly in data centres and robotics, by leveraging the complementary strengths of both economies across the semiconductor value chain.

The collaboration is underpinned by strong complementarities across the semiconductor value chain, with Taiwan specialising in chip design and fabrication, while Malaysia plays a key role in packaging and testing.

Director of the Taipei Economic and Cultural Office in Malaysia, James Chang, said Taiwan remains a global leader in semiconductor design and fabrication, while Malaysia plays a crucial role in packaging and testing.

“Taiwan is very strong in integrated circuit (IC) design and chip fabrication. We are number one in fabrication, with companies like Taiwan Semiconductor Manufacturing Company Ltd (TSMC), while Malaysia is already number four globally in packaging and testing,” he said in an interview with Bernama.

He said this on the sidelines of SEMICON Southeast Asia 2026, held from May 5 to 7 at the Malaysia International Trade and Exhibition Centre (MITEC), here on Tuesday.

He noted that this complementarity presents significant opportunities, particularly in emerging segments such as robotics and artificial intelligence (AI), where both high-end and traditional chips are required.

“High-end graphics processing units (GPUs), mostly manufactured in Taiwan, are used in AI data centres, but robotics also requires sensors and controllers, where Malaysia has strong potential to participate,” he said.

Chang added that ongoing global supply chain diversification, including “Taiwan Plus One” strategies, has prompted more Taiwanese firms to expand into Malaysia.

He said Taiwanese investors typically emphasise localisation, including working with local suppliers and transferring technology, unlike traditional models that rely heavily on imported expertise.

“In the long run, we want to grow together with Malaysia, not just utilise resources,” he said.

On the data centre boom in Malaysia, Chang said Taiwanese companies are already contributing through server manufacturing and ecosystem development.

He cited a Taiwanese firm operating in Johor that manufactures servers for regional and global markets, while actively building a local supplier network to support the ecosystem.

“This helps local companies upgrade their technological capabilities when they integrate into the supply chain,” he noted.

However, Chang highlighted several challenges that need to be addressed to sustain growth, particularly in talent mobility and policy coordination.

“Attracting high-tech investments requires the ability to bring in experienced foreign engineers to train local talent, at least in the early stages. This requires coordination between multiple agencies, including human resources, immigration and investment authorities,” he said.

In addition, he proposed upgrading the existing bilateral investment agreement between Taiwan and Malaysia, originally signed in 1993, to reflect modern industry needs.

“Intellectual property protection is very important to attract high-tech investments and encourage technology transfer,” he said.

Meanwhile, industry players from Taiwan expressed confidence in Malaysia’s growing semiconductor ecosystem, particularly as it is driven by AI demand and increasing investments in the northern and southern regions of the country.

Hanbell Precise Machinery Co Ltd general manager Hong Sheng Fang said the company, which specialises in advanced dry screw vacuum technology, helps manufacturers reduce costs through its dry vacuum solutions by improving energy efficiency and extending operational lifespan.

“Our products focus on total cost of ownership, with lower energy consumption and longer operating time reducing overall production costs,” he said, adding that the company has already deployed over 1,000 units in Malaysia.

He said the firm plans to strengthen its presence by establishing service capabilities first before considering local assembly operations.

Separately, Bossmen Inc export manager Lewis Liu said the company sees strong demand for its precision microenvironment control solutions, particularly in semiconductor manufacturing.

“We provide highly controlled environments using nitrogen systems and data-driven monitoring to ensure optimal storage and production conditions,” he said.

Liu noted that Malaysia is currently experiencing strong growth in semiconductor demand, driven by AI-related investments, making it an opportune time for expansion.

“We are seeing increasing enquiries from both Penang and Johor. This is the right time, and there are many opportunities here,” he added.

-- BERNAMA