Malaysia is ramping up its efforts in semiconductor manufacturing to keep up with the surging demand from the electric vehicle (EV) industry. The International Trade and Industry Minister, Zafrul Aziz, revealed a new strategy aimed at boosting Malaysia’s production of crucial chips for EVs and autonomous vehicles. Aziz sees the global shift towards EVs as a major opportunity for Malaysia to become a leading chip supplier.
The minister outlined a plan to capitalize on the growing demand for semiconductors, particularly for EVs. Aziz emphasized the significance of semiconductors in advanced auto manufacturing, with EVs requiring up to 15,000 chips compared to around 5,000 for a standard car. He highlighted that Malaysia already supplies billions of components and is poised for significant growth, intending to attract major EV manufacturers like Tesla to expand their operations in the country.
While Malaysia’s semiconductor industry already accounts for 7% of its GDP and half of its exports, the government aims to further develop the sector. They have established a national semiconductor task force to focus on wafer fabrication and circuit engraving in the front end of chip production, rather than just the assembly and packaging in the back end.
Minister Aziz believes that the foundation laid by Malaysia’s semiconductor industry over the past 50 years gives the country a strong advantage to move up the value chain. With the establishment of partnerships and the creation of a favorable supply chain ecosystem, Malaysia aims to become a significant player in the global semiconductor market.
This strategic emphasis on semiconductor manufacturing aligns with Malaysia’s vision to leverage the EV boom as an opportunity for manufacturing exports. By investing in semiconductor production and attracting EV manufacturers, Malaysia aims to position itself at the forefront of the EV revolution while contributing to the growth of its economy.
The source of the article is from the blog krama.net