Malaysia Aims for 7% Global Advanced Chip Packaging Share by 2035 with $47 Million Boost

Malaysia has set an ambitious goal to capture 7% of the global advanced semiconductor packaging market by 2035.

The government approved a RM92 million R&D grant to the Malaysia Advanced Packaging Consortium (MAPC), matched by industry funds for a total of nearly RM186 million over two years.

Malaysia's Semiconductor Foundations

Malaysia, the world's sixth-largest semiconductor exporter, currently holds 13% of global assembly, testing, and packaging activities.

With a 50-year history in the sector, the country leverages hubs like Penang to climb the value chain under the National Semiconductor Strategy (NSS).

Key Players in MAPC

The consortium unites five local firms: SkyeChip for chip design, Inari Technology for packaging pilots, FusionAP for IP, Pentamaster for testing gear, and NSW Automation for precision tech.

This collaboration targets breakthroughs in high-bandwidth memory and 3D chiplets amid surging AI demand.

High Stakes and Rewards

Advanced packaging promises profit margins of 40-50%, far above traditional processes, as the global chip industry nears $1 trillion by 2030.

Malaysia's geopolitical neutrality positions it as a resilient hub amid US-China tensions, drawing firms diversifying supply chains.

The 13th Malaysia Plan emphasizes talent training and R&D to create high-skilled jobs, potentially boosting GDP.

Challenges include starting from zero in advanced packaging and competing with Taiwan and South Korea.

Success could lower costs for consumer gadgets like smartphones and EVs, benefiting everyday Malaysians through economic growth and tech access.