In March 2020, the outbreak of COVID-19 (Severe Special Infectious Pneumonia, New Coronary Pneumonia, Wuhan Pneumonia) outbreak in Malaysia, and the ensuing "National Movement Control Order" (MCO) forced the shutdown of the manufacturing industry, impacting the global semiconductor industry. supply chain. It is hard to come to 2022 when the epidemic is slowing down, but due to the unsolved labor shortage problem in Malaysia, the semiconductor industry was forced to stop taking orders due to the lack of 15,000 workers, which once again made the supply of the semiconductor industry tight.
In the position of the global semiconductor industry chain, Malaysia's strength lies in the downstream packaging and testing, accounting for nearly 13% of the global market share (Southeast Asia has a market share of 27% in the global packaging banner design and testing market), and about 7% of the world's semiconductor trade needs to go through Additive manufacturing in factories in Malaysia, or assembly of parts before shipment, and about 50 multinational semiconductor companies have set up packaging and testing plants locally, including NXP, Broadcom, Micron, ST, Infineon, Texas Instruments, ON Semiconductor, Sun and Moon etc. What advantages does Malaysia have to attract multinational semiconductor companies to invest? Does Malaysia have its own semiconductor companies? Regarding the development of the semiconductor industry in Malaysia, everything started from Penang 50 years ago.
Eastern Silicon Valley When you think of Penang, what comes to your mind? Perhaps you will think of the island style with swaying coconut shadows, and the world heritage city full of British colonial style, or the state with the highest concentration of Chinese in Malaysia, with the familiar Hokkien language. In fact, Penang is also an important industrial city in Malaysia, with the Electrical and Electronic (E&E) industry as the bulk, also known as the "Silicon Valley of the East". Penang was developed as a free port by the British as early as the end of the 17th century, and the development of entrepot trade made it the "Pearl of the Orient" on the route of the Strait of Malacca. However, after Malaya became independent from the British colony in 1957, as the central government vigorously developed the Klang port in Selangor in the central Malay peninsula, it affected the development of the free port of Penang, and finally Penang was revoked by the central government in 1969.