Malaysian Semiconductor Exhibitors Encouraged By Global Industry Forecast

By Manik Mehta

SAN FRANCISCO, July 11 (Bernama) -- The 10 Malaysian companies showcasing their semiconductor products and services at the ongoing three-day SEMICON West show in San Francisco are greatly encouraged by the forecast made by the global industry association of the nano- and micro-electronic manufacturing supply chains (SEMI)

One Malaysian executive described the forecast as a "strong impetus" for Malaysian semiconductor companies that are driving the country's electrical and electronic (E&E) sector which has become the mainstay of Malaysia's exports to the United States.

SEMI has projected years of double-digit growth in worldwide semiconductor equipment sales, according to the mid-year edition of the SEMI Capital Equipment Forecast released at the SEMICON West show.

SEMI forecasted that the total semiconductor equipment market was expected to grow 20.8 per cent in 2014 to reach US$38.4 billion, and to expand by another 10.8 per cent in 2015 to exceed US$42.6 billion.

The forecast could translate as huge business potential for Malaysia's E&E industry which not only can grow exponentially but also have a positive impact on job creation, hi-tech innovative capabilities and strengthened the research and development base.

SEMI President and Chief Executive Officer Denny McGuirk said the the forecast portended well for Malaysia's E & E exports to the US which imported the bulk of its foreign supplies of these products.

The salient feature of Malaysia's participation at the show is the presence of six small and medium sized enterprises (SMEs).

The "dipping of the toe in the water", as the debut of some Malaysian exhibitors is being described here, will also sharpen the consciousness of first-time exhibitors to international business and expose them to new technologies and marketing techniques visible at the show.

Rusiah Mohamed, the Los Angeles-based Malaysian Trade Commissioner, who is overseeing Malaysia's participation at the San Francisco show, sounded upbeat about Malaysia's participation.

"This is the sixth time the Malaysia External Trade Corporation is participating in the SEMICON West show.

"The main products and services exhibited here by Malaysian companies include testing and automation machines, design and assembly, OEM contract manufacturing services, precision tooling and fabrication of parts and components, advance materials and clean room gloves," Rusiah told Bernama.

She said Malaysian exhibitors could benefit not only from their contacts with US buyers but also from businessmen from neighbouring countries, who throng to the show to source their E & E needs.

"As you know, Malaysia has good potential and opportunity in the E & E sector, given its strong base, particularly, in the semiconductor sector.

"This show serves as a good platform for Malaysia to showcase Malaysia's capabilities to the US market, in particular, and to the world, in general," Rusiah said.

Malaysia's E&E exports to the U.S. market in the first five months of the current year surged 10.1 per cent to RM14.37 billion over the same period last year.

Total E&E exports to the US in 2013 amounted to RM32.75 billion, accounting for 56.4 per cent of Malaysia's overall exports to the US.

Rusiah said the major items exported under Malaysia's E&E product category consisted, mainly, of semiconductor devices, transistors and valves, telecommunication equipment and parts, magnetic and optical readers, electrical apparatus for electrical circuits and printed circuits, and parts and accessories for office machines and automatic data processing machines.


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