Taiwan Eyes Stronger Cooperation In High-Tech Supply Chain With Malaysia
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, May 12 (Bernama) -- Taiwan is seeking to strengthen cooperation with Malaysia in the high-tech supply chain, particularly in the electrical and electronics (E&E) sector, including semiconductors and artificial intelligence (AI).
Dr Lien Yu-Ping, representative of the Taipei Economic and Cultural Office in Malaysia, said smart applications and software will drive the next generation of technolog, with robotics also expected to become a future trend.
“Malaysia and Taiwan can work together to seize these opportunities, especially with Penang’s strong and comprehensive supply chain ecosystem and the presence of multinational companies.
“Taiwan is strong in integration, while Malaysia can serve as a showcase for next-generation high-tech industries, making it a win-win partnership for both sides,” she told Bernama at the Taiwan Smart Solutions Connect 2026 here, today.
Meanwhile, she said Taiwan–Malaysia bilateral trade is projected to grow 20 to 30 per cent this year, driven by the E&E sector.
Lien said the E&E sector, especially semiconductors and AI, remains the largest contributor to bilateral trade as it is heavily investment-driven.
“With the booming of AI and AI-related industries, both Malaysia and Taiwan are benefitting from this development.
“AI-related industries depend heavily on chips. Products and sectors like smartphones, electric vehicles, cloud computing, AI applications, data centres, and robotics all rely on AI technologies.
“AI, in turn, depends on semiconductors, which are reshaping the global ecosystem and strengthening global competitiveness,” she said.
Taiwan is a leader in the semiconductor industry and this remains one of the key strengths of its industrial development she added.
Several well-known semiconductor companies across the supply chain have invested in Malaysia, including ASE Technology Holding in Penang for semiconductor packaging and testing, TecoBar Technology Co. Ltd in Penang, and Wiwynn in Johor, which specialises in data centre equipment.
“When it comes to data centres and cloud computing, we help train large language models (LLMs) used in AI. Once trained, these AI applications can be used in many sectors such as transportation, education, and urban development, driving the growth of smart solutions and complete ecosystems,” she said.
Last year, Taiwan-Malaysia bilateral trade reached US$57.4 billion (US$1=RM3.92), representing a 32.3 per cent increase compared to the previous year.
Taiwan is now Malaysia's fourth largest trading partner and seventh largest foreign direct investment, creating more than 470,000 jobs in Malaysia.
The Taiwan Smart Solutions Connect 2026 organised by the Taiwan International Trade Administration (TITA) and the Taiwan External Trade Development Council (TAITRA) today brought together 26 of Taiwan’s most innovative tech enterprises.
Johnson Chang, chief executive officer and general manager of Nietzsche Enterprise Co. Ltd, one of the participants at the event, said Malaysia’s move towards smart cities, environmental, social and governance (ESG) goals, and sustainable development under the National Industrial Master Plan 2030 (NIMP 2030) highlights the importance of turning data into practical action.
He said the company uses AI of Things (AIoT) sensors, LoRa (Long Range low-power communication), and AI analytics to help cities and factories improve efficiency, reduce emissions, and make faster decisions.
“For the environmental aspect, we provide smart parking and smart manufacturing solutions that help reduce fuel consumption, energy waste, and carbon emissions through real-time monitoring and data tracking.
“We also support ESG reporting, carbon audits, and energy management to help companies build more credible and traceable sustainability practices,” he said.
On the social side, Chang said the company focuses on safety and community well-being through technologies such as trackers for elderly care and AI cameras that monitor workplace safety compliance.
“These systems are designed to improve public safety, protect workers and support vulnerable groups,” he said.
-- BERNAMA