KUALA LUMPUR - Malaysia, already a major player in the chip industry, is aiming high as it wants to move up the value chain into chip design and double its global market share of the overall semiconductor trade in five years, said a top government official at the state agency driving the country’s hoped-for transition into a regional digital hub.
Malaysia must quickly seize opportunities in chip design to move up the semiconductor value chain as competition intensifies, he added. “Arm will act as a catalyst for innovation by empowering local IC companies with the guidance and support they need to thrive in the global semiconductor market,” said Mr Yong. Arm licenses its designs to more than 1,000 global partners such as Apple, Microsoft and Samsung.
This compares with the lower value-added assembly and testing segments, which typically have profit margins of 5 to 25 per cent, she noted.Malaysia, which has emerged as a significant player in the chip-manufacturing industry since its entry in the past five decades, accounts for about 13% of global back-end manufacturing, according to the Malaysian Investment Development Authority.
“More exports of chips to Southeast Asia and the Middle East markets are also expected after the new hub is operational, which will attract around RM1billion in foreign direct investments during the initial phase ,” Sidec’s Mr Yong said.