Malaysia is positioning itself as a key player in the semiconductor industry with ambitious plans to produce graphics processing units (GPUs) locally within the next five to ten years. This development was announced by Economy Minister Rafizi Ramli during a forum dedicated to the country's economic prospects. "If we are able to realise the potential to downstream our semiconductors, instead of just doing backend, we are hoping that we can start producing made-by-Malaysia GPUs and chips in the next five to ten years," Ramli stated.

GPUs, which are specialised electronic circuits primarily designed for digital image processing, play a crucial role in accelerating computer graphics. These chips can be found in a multitude of devices including mobile phones, personal computers, workstations, and game consoles.

According to a report from Reuters, Malaysia already holds a significant position in the semiconductor landscape, accounting for approximately 13% of global testing and packaging. The country has attracted substantial investments from leading technology firms, including notable names such as Intel and Infineon, which have contributed to its semiconductor development.

The Malaysian Investment Development Authority (MIDA) has highlighted Malaysia's transformation from a minor player in the semiconductor industry to a more sophisticated hub focusing on cutting-edge design and advanced packaging techniques. The agency attributes this evolution to critical factors such as a skilled workforce, strategic geographical positioning, and robust government support, which together create a conducive environment for growth and innovation in the sector.

In fact, from 2021 to the first half of 2024, Malaysia secured over US$232.2 billion in approved investments, which underscores the nation’s resilience and attractiveness as an investment destination. MIDA elaborated that the advancements in the semiconductor sector are evident across the entire value chain—from state-of-the-art manufacturing to the newest packaging and testing methodologies, as well as integrated circuit design.

As Malaysia gears up to bolster its semiconductor capabilities, it signals a promising future for the country's technological landscape, aiming to harness local expertise and resources to meet increasing global demands for advanced semiconductor products.

Source: Noah Wire Services