Malaysia Sees No Major Energy, Raw Material Risk To Semiconductor Industry -- Johari
KUALA LUMPUR, May 5 (Bernama) -- Malaysia does not see energy supply or raw material shortages as a major risk to its semiconductor industry at this stage, supported by its status as a net gas exporter, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said.
He said the country is a net importer of oil but a net exporter of gas, with sufficient reserves to support industrial expansion.
“At this moment, we have not seen that as a serious concern,” he told reporters after the launch of SEMICON Southeast Asia 2026 here today.
Johari said Malaysia currently exports most of its surplus gas, but there is potential to make better domestic use of the resource to support industrial development, including energy-intensive sectors.
On possible supply risks involving raw materials such as helium used in semiconductor production, he said the situation remains manageable for now but is subject to global developments.
“The only problem is actually whoever gets the supply from West Asia, as long as there is a war going on, you can see the shortage about to be seen,” he said.
Despite global uncertainties, Johari said investor sentiment towards the country’s semiconductor sector remains encouraging, with companies continuing to move ahead with their plans.
“As far as I am concerned, I think we must continue to engage with them. But so far, I think everyone (industry players) is eager to proceed,” he said.
He said the semiconductor segment remains a key pillar within Malaysia’s electrical and electronics (E&E) industry, which recorded exports of about RM711 billion in 2025.
“Out of the RM711 billion in the E&E sector, there are RM465 million exports of semiconductors. By 2030, semiconductors alone are expected to reach a global market size of about US$1 trillion (US$1=RM3.95). So, this is a lot of opportunity (for Malaysia) going forward.
“Malaysia must strengthen its semiconductor ecosystem to capture future growth opportunities and remain competitive in the evolving global landscape,” he said.
He said that the industry, valued at about US$630 billion in 2024, is expected to expand rapidly, driven primarily by the surge in artificial intelligence infrastructure, including demand for high-performance data centres, servers and network equipment to support rising data traffic.
Meanwhile, Johari said that while Malaysia has established strong capabilities in the back-end segment, there is a growing need to expand into front-end activities such as wafer fabrication.
He said that attracting foreign investment will continue to play a key role in accelerating the country’s ambitions in high-value semiconductor manufacturing.
“So, if we are not ready to do it, then we have to invite investors to come. So, Infineon is one of the examples; they have come to do wafer fabrication in Kulim,” he said.
On another development, Johari said Malaysia has begun allocating technology tokens secured under its agreement with Arm Holdings to accelerate domestic integrated circuit (IC) design capabilities and strengthen industry collaboration.
“We have a basic IC design, about 25 tokens that they have given to us. And then the advanced one, we have seven.
“So out of seven, we have given three to some of the industry players so that they cooperate with the local companies,” he said.
As for the basic IC design allocation, about five companies are currently involved, with the rollout still ongoing, he said, adding that Malaysia has a four-year timeframe to fully utilise the tokens and identify suitable partners to maximise their use.
The agreement with Arm Holdings was undertaken to provide Malaysia access to the company’s semiconductor intellectual property.
-- BERNAMA