Latest Cover Story | New Focus on Chipmaking: Malaysia in the Wake of the Trump Effect (AI Translation)
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文｜财新周刊 王端 杨敏 发自马来西亚槟城、柔佛，覃敏 发自北京
By Caixin Weekly's Wang Duan, Yang Min, reporting from Penang and Johor, Malaysia, and Tan Min reporting from Beijing
文｜财新周刊 王端 杨敏 发自马来西亚槟城、柔佛，覃敏 发自北京
By Wang Duan and Yang Min of Caixin Weekly, reporting from Penang and Johor, Malaysia, and Tan Min reporting from Beijing
在马来西亚西北部联邦州槟城的机场附近，空气中弥漫着浓重的汽油味，一辆辆DHL大货车将半导体产品源源不断地运往机场。
Near the airport in Penang, a northwest federal state of Malaysia, there is a strong scent of gasoline in the air as DHL trucks continuously transport semiconductor products to the airport.
槟城地处热带，四季皆享椰林绿野、碧海蓝天的自然美景。这个面积不过1000平方公里的地方，总人口约177万，其中马来裔占45.1%，华裔占44.2%，是马来西亚各州拥有最多集成电路（IC）设计及研发公司的地区，有“东方硅谷”之称。
Located in the tropics, Penang is blessed year-round with the natural beauty of coconut groves and lush greenery against a backdrop of azure seas and skies. Covering an area of about 1,000 square kilometers, this region is home to approximately 1.77 million people. Of the population, 45.1% are of Malay descent and 44.2% are of Chinese descent. Penang is known as the "Silicon Valley of the East" for having the highest concentration of integrated circuit (IC) design and research companies among Malaysia's states.
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- Penang in Malaysia is an emerging hub for semiconductor industries, hosting over 350 international companies, thanks to strategic initiatives and investments in technology and infrastructure.
- Malaysia ranks as the sixth-largest semiconductor exporter globally and aims for further growth through new policies and collaboration with foreign enterprises.
- Southeast Asia, including Malaysia, is witnessing an influx of Chinese semiconductor firms seeking to expand globally amidst the geopolitical tensions involving the U.S. and China, facilitated by regional incentives and resources.
The Caixin Weekly article by Wang Duan, Yang Min, and Tan Min provides an in-depth exploration of Malaysia's strategically burgeoning semiconductor industry, revealing the region's increasing relevance in the global semiconductor supply chain. In Penang, Malaysia, the semiconductor industry thrives with a robust concentration of industrial players, earning the region the moniker "Silicon Valley of the East" due to its high density of integrated circuit (IC) design and research companies. Penang's prowess in semiconductor packaging and testing dates back to the 1970s, laying a foundation even before similar developments in South Korea and Taiwan. The Bayan Lepas Free Industrial Zone, near Penang International Airport, encapsulates an area bustling with semiconductor-related activities, including facilities from major global corporations like Intel, Micron, Infineon, Bosch, Kyocera, and others.[para. 1][para. 3]
Under the Prime Minister Anwar Ibrahim's administration, Malaysia's semiconductor ambitions have intensified through initiatives like the National Semiconductor Strategy (NSS), which allocates over 25 billion Malaysian Ringgit for sector growth, emphasizing domestic advancements in the semiconductor supply chain and preparing skilled technical professionals. The broader geopolitical context, including the U.S. technological blockade against China, presents a unique "golden opportunity" for Malaysia as it stands poised to bridge the semiconductor gap within Southeast Asia.[para. 5][para. 7]
The narrative further unfolds Malaysia’s nuanced relationship with geopolitical giants and its position in the global semiconductor market. As Southeast Asia serves as an essential link for China's semiconductor industry, Penang emerges as a microcosm of international semiconductor collaborations, attracting a diverse set of international delegates and companies seeking alliances amidst ongoing global tech tensions. The Malaysian Semiconductor Industry Association highlights this dynamic, underscoring Penang's role in propelling Malaysia's economic and industrial growth in the semiconductor domain.[para. 9][para. 11]
The article indicates that Southeast Asia, characterized by its composite landscape of multiple countries: Singapore, Malaysia, and Vietnam, hosts significant activities in the semiconductor domain, albeit with nuanced inter-market relationships. Singapore's robust infrastructure, along with Malaysia’s mature semiconductor industry and Vietnam's burgeoning tech talent, create a competitive yet complementary ecosystem in the region, each offering a unique setting for Chinese semiconductor firms looking to expand abroad.[para. 13][para. 14]
In Malaysia, national strategies aim to escalate from "Made in Malaysia" to "Made by Malaysia," shifting from mere industrial hosts to centers of innovation and development, crucially in IC design and high-tech manufacturing. Various Malaysian states' endeavors underscore this transformative phase as they actively court international investment to boost local tech industries.[para. 19][para. 21]
In conclusion, Malaysia's central role in the burgeoning semiconductor landscape is underscored by a confluence of historical talent development, strategic stakeholder investments, and the timely geopolitical shifts that boost its capacity and aspirations in the global semiconductor sector. The article comprehensively illustrates how Malaysia leverages its industrial base, strategic policy implementation, and advantageous geopolitical positioning as it vies for increased integration in the global semiconductor supply chain.
- TF-AMD
- TF-AMD is a joint venture between China's TFME (Tongfu Microelectronics) and American chipmaker AMD. Established in 2016, TF-AMD involves the acquisition of AMD's factories in Suzhou, China, and Penang, Malaysia. The company focuses on advanced semiconductor supply chain integration, handling CPU and GPU packaging and testing orders. TF-AMD's Penang facility has expanded significantly, now consisting of two plants with a total area of 17 square meters and over 4,000 employees.
- Kyocera
- Kyocera is a Japanese electronic components developer and manufacturer located in the Bayan Lepas Free Industrial Zone near Penang International Airport in Malaysia. The factory has each of its towering chimneys marked with a sequence number, indicating an orderly arrangement. Kyocera is situated near other major semiconductor and electronics companies, contributing to Penang's reputation as "The Silicon Valley of the East."
- Western Digital
- Western Digital is mentioned as a hard drive manufacturer located opposite Kyocera in the Bayan Lepas Free Industrial Trade Zone near Penang International Airport in Malaysia. Workers were observed outside the factory during a lunchtime break.
- Intel
- Intel established its first overseas factory in Penang, Malaysia, in 1972. It is often referred to as the "Whampoa Military Academy" of the local semiconductor industry due to its significant impact on talent cultivation. Intel plans to invest $70 billion over ten years to construct new facilities in Penang, focusing on its advanced 3D IC packaging technology. Currently, Intel employs over 10,000 people in Penang.
- Micron
- Micron is mentioned as a semiconductor manufacturer with a facility in Johor, Malaysia. Johor aims to leverage its proximity to Singapore to create a "front shop, back factory" model, with Micron and STMicroelectronics as key semiconductor manufacturers in the region.
- Infineon
- Infineon is investing 70 billion euros in a new wafer fab in Kulim, Kedah, adjacent to Penang, Malaysia. The first phase focuses on producing silicon carbide (SiC) power semiconductor wafers, including gallium nitride (GaN) epitaxy. The project began in August 2023, with the first stage investment costing 20 billion euros, and plans for a second phase with a 50 billion euro investment, aiming to become the world's largest SiC power chip manufacturing facility.
- Bosch
- Bosch is one of the key foreign electronic companies that contributed to the industrial foundation in Penang, Malaysia, along with others like AMD, Intel, and Osram. These companies, known as the "eight samurai," helped establish a base for the local semiconductor industry. Bosch's presence in Penang represents the long-standing engagement of major international electronics firms in Malaysia, which has attracted significant investment and contributed to the region's development as a semiconductor hub.
- Renesas
- Renesas is mentioned in the article as a semiconductor company with a presence in Penang, Malaysia. It is the successor of Hitachi's semiconductor business and is part of the region's dynamic semiconductor industry, alongside other major players like Intel and Bosch. Renesas, being a German or Japanese enterprise, plays a significant role in Penang's thriving cluster of semiconductor design, manufacturing, and testing companies within the region.
- TFME
- TFME, or Tongfu Microelectronics, is a major Chinese semiconductor company. It operates TF-AMD, a joint venture with AMD, in Penang, Malaysia. The company acquired 85% stakes in AMD's Suzhou and Penang plants for $3.71 billion in 2016. TF-AMD engages in packaging and testing for CPUs and GPUs, enhancing TFME's global competitiveness and market reach. The Penang plant has expanded to two factories, supporting international semiconductor supply chains.
- ASE
- The article does not provide specific information about ASE. However, it mentions several semiconductor companies and initiatives in Malaysia, particularly focusing on the development and investment in semiconductor industries in regions like Penang and Selangor. ASE, a leading IC packaging and testing company globally, is not specifically highlighted in this article. Instead, the focus is on Malaysia's efforts to enhance its semiconductor industry through various strategic initiatives and attracting foreign investment.
- Inari
- Inari is a Malaysian chip packaging and electronic manufacturing company founded in 2006. It operates 11 factories in Malaysia, the Philippines, and China, with major clients including Broadcom and Osram. Inari represents local companies that need significant R&D investment to advance in the value chain and transform into product owners. Despite having a majority American clientele, Inari is increasingly engaging with Chinese businesses as they establish operations or seek partnerships in Malaysia.
- ViTrox
- ViTrox is a Malaysian company located in Penang’s Bayan Lepas Free Trade Industrial Zone, which is a hub for semiconductor and electronics companies. ViTrox is part of the region's vibrant ecosystem, alongside other local and international semiconductor players. The area itself is known for hosting over 350 foreign enterprises, with a strong presence in the semiconductor and electronics industries.
- HanSingTek
- HanSingTek is a Chinese chip design service company that registered a new company in Singapore in 2022. Initially, many semiconductor design companies chose Singapore as their first Southeast Asian base, but recognizing Singapore's market limitations, they expanded to Vietnam and Malaysia, among others. This shift was influenced by Southeast Asia's historical advantage in the semiconductor industry, attracting a growing number of design and packaging companies.
- Osens Technology
- Osens Technology, mentioned in the article, is based in Zhuhai and specializes in producing testing equipment for semiconductor and consumer electronics. Their clients mainly include North American companies like Apple, Google, and Meta. In India, they have achieved 100% local manufacturing to meet customer requirements, capitalizing on India's population and labor cost advantages. The company has also deployed production lines in the Philippines, attracting skilled technical talent despite cultural differences.
- STMicroelectronics
- STMicroelectronics has a semiconductor manufacturing plant located in the northern part of Johor, Malaysia. It is one of the semiconductor manufacturing facilities in Johor, along with Micron, as mentioned in the article. The state of Johor aims to attract semiconductor material or related manufacturing facilities and seeks to leverage its geographical advantage to form a complementary "front shop back factory" relationship with Singapore.
- Texas Instruments
- The article mentions that Texas Instruments is one of the more than 300 semiconductor companies in Singapore. The company is part of Singapore's extensive semiconductor industry, which also includes other major firms like STMicroelectronics, Infineon, and Micron. This highlights Singapore's role as a significant player in the semiconductor supply chain within Southeast Asia.
- Early 1970s：
- The semiconductor packaging and testing industry in Penang began, slightly earlier than in South Korea and Taiwan
- 1970s：
- The Bayan Lepas Free Industrial Zone was established near Penang International Airport as Malaysia's first free trade industrial zone
- 2016：
- China's semiconductor sales were recorded at $100 billion
- 2022：
- Anwar Ibrahim became the Prime Minister of Malaysia and emphasized economic development, especially in the semiconductor industry
- 2023：
- China's semiconductor sales increased to $150 billion
- May 2023：
- Malaysia unveiled the National Semiconductor Strategy (NSS) with a fiscal support of over 25 billion Malaysian Ringgit
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