Govt targets RM500bil investments for National Semiconductor Strategy

The Malaysian government, guided by the Ministry of International Trade and Industry (MITI), planned to draw in no less than RM500 billion in investments via the National Semiconductor Strategy (NSS).

The NSS has three phases, and they are included among the five targets outlined in the NSS.

Prime Minister Datuk Seri Anwar Ibrahim said that the investments were part of the first phase, in his keynote speech at Semicon Southeast Asia 2024, reported NST.

“Ultimately, the NSS is a means for Malaysia to advance and democratise technology for the good of all humanity,” Anwar said, reported FMT.

He said that Phase 1 of the NSS will see Domestic Direct Investment (DDI) prioritized Integrated circuit (IC) design, advanced packaging, and manufacturing equipment, while foreign direct investment (FDI) will focus on wafer fabs and manufacturing equipment.

The second phase focuses on boosting the nation’s expertise in cutting-edge logic and memory chip design, fabrication, and testing. Additionally, it also aims to integrate the buyers of these chips.

“The final phase aims to support the development of world-class Malaysian firms in semiconductor design, advanced packaging and manufacturing equipment,” Anwar said.

In his keynote speech, Anwar outlined the NSS targets, highlighting domestic investments in integrated circuit design and foreign direct investments in manufacturing equipment as part of the first target.

The second target aims to establish 10 Malaysian companies in design and advanced packaging, and 100 semiconductor-related firms, according to Anwar.

The third goal is to make Malaysia a global R&D hub, said Anwar.

Fourth target is to train and upskill 60,000 high-skilled engineers and the final target is allocating RM25 billion in fiscal support for targeted incentives, added Anwar.

He mentioned that the investment, trade, and industry ministry will soon unveil the specifics.