Malaysia Aims To Build Advanced Semiconductor Packaging In Two Years
BATU KAWAN, May 8 (Bernama) -- Malaysia aims to develop domestic capability in advanced semiconductor packaging within two years through the establishment of the Malaysia Advanced Packaging Consortium (MAPC).
Science, Technology and Innovation Minister Datuk Chang Lih Kang said the consortium was formed through collaboration among five local companies and the government under a matching grant and “whole-of-nation” approach, combining public and industry efforts to build advanced packaging capabilities.
He said the five companies are SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd and NSW Automation Sdn Bhd, each contributing distinct strengths to the sector.
“The government has approved a RM92 million research and development (R&D) grant over 24 months for the programme, while industry is contributing RM93 million, bringing the total to RM185 million.
“The main objective is to enable Malaysia to move up the semiconductor value chain. We already have a strong foundation in semiconductors and electrical and electronics, but we have been largely focused on outsourced semiconductor assembly and test (OSAT),” he told reporters.
He spoke after a working visit to three of the companies, joined by Economy Minister Akmal Nasrullah Mohd Nasir, Deputy Investment, Trade and Industry (MITI) Minister Sim Tze Tzin and Academy of Sciences Malaysia president Tengku Datuk Mohd Azzman Shariffadeen.
Chang said the initiative is expected to strengthen local firms, attract investment, generate economic returns, create jobs and help retain local talent.
He added that the project could create a win-win outcome for both government and industry if targets are achieved within two years.
“Currently, we do not have the capability to produce advanced packaging. The public and private sectors are working together to develop this capability. If successful, the first benefit is that intellectual property (IP) will remain in Malaysia.
“Second, advanced packaging is highly niche and only a few countries can do it. If Malaysia succeeds, it will unlock significant business opportunities and accelerate economic growth,” he said.
Separately, Akmal Nasrullah said semiconductor development is a key sector under the 13th Malaysia Plan (13MP), particularly in high-impact and high-value industries.
He said national development should not focus solely on physical infrastructure, but must also include investment in R&D, with both government and private sector commitment.
“The semiconductor supply chain is long, spanning design, assembly, testing and device production for end users.
“Development is not only about physical infrastructure. Through MOSTI (Ministry of Science, Technology and Innovation), the Economy Ministry is of the view that development investment must also include R&D,” he said.
Meanwhile, Sim said Malaysia is well known for OSAT capabilities, but its packaging technology has remained largely traditional for more than 50 years.
He said MITI supports the MAPC consortium to ensure local companies develop their own IP rather than relying on multinational firms.
“The country is currently the world’s sixth-largest semiconductor exporter, and the development of advanced packaging will strengthen the ecosystem and national IP as the world enters the AI supercycle.
“If successful, Malaysia will become a key hub for semiconductor packaging, testing and export,” he said, adding that the initiative is part of the National Semiconductor Strategy (NSS), which focuses on advanced packaging.
-- BERNAMA