5 firms could boost Malaysia’s high-value semiconductor industry, says expert

Malaysia aims to develop its semiconductor packaging industry over the next two years, with the government establishing the Malaysia Advanced Packaging Consortium (MAPC) to bring five local firms together. Andrew Chan, the executive director of the Malaysia Semiconductor Industry Association, believes that pooling resources under MAPC could generate greater value than funding the companies separately.

The consortium would combine expertise in IC design, process development, assembly, testing, automation, and equipment. Chan emphasized that the consortium's success hinges on turning developed technology into commercial products, rather than merely building capacity. He stressed the importance of commercialization efforts alongside technology development, with a clear pathway from research to market.

The five companies involved are SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd, and NSW Automation Sdn Bhd. These firms specialize in chip design, process development, advanced packaging, testing, and precision equipment. The RM185.8 million two-year pilot project, funded equally by the government and industry, aims to develop a locally produced HBM4 test chip and raise the technology's readiness level from 5 to 9.

Ida Yasin, a professor at Putra Business School, cautioned that strong business efficiency and governance are essential for the government's investment to generate tangible economic returns. She highlighted that success should be measured not only by the companies' performance but also by the creation of high-skilled jobs, increased local value, and Malaysia's enhanced position in the global semiconductor supply chain.