Malaysia Boosts Semiconductor Push: IC Design, Advanced Packaging, and High-Value Tech Drive Economic Shift

Malaysia is intensifying its efforts in integrated circuit (IC) design, advanced packaging, and other high-value technologies to elevate its position in the global semiconductor supply chain.

Deputy Science, Technology and Innovation Minister Datuk Mohammad Yusof Apdal announced that the Ministry of Science, Technology and Innovation (Mosti), through Mimos Bhd, aims to transform local firms into original design manufacturers (ODMs) and technology owners, moving beyond assembly operations.

Malaysia's National Semiconductor Strategy

This strategic shift aligns with the National Semiconductor Strategy and High Growth High Value agenda, fostering a transition from assembly-driven to innovation-led economy.

Historically, Mimos has filed over 1,400 patents, including 330 semiconductor-related, supporting technology transfer via licensing, co-development, and spin-offs.

The Mimos Academy offers training in IC design, wafer fabrication, reliability engineering, and artificial intelligence (AI) to address talent shortages in expanding tech sectors.

Infrastructure and Industry Collaboration

Facilities like the Semiconductor Technology Center and Industry Technology Innovation Centre (ITIC) in Kulim provide shared access to wafer fabrication, IC testing, and co-design tools.

In 2025, ITIC hosted 19 technical sessions, training 400 participants from 60 local companies and institutions, demonstrating growing industry engagement.

Current proof-of-concept projects with electrical and electronics firms are accelerating commercialization and strengthening domestic value chains.

Beyond semiconductors, Cradle Fund grants like CIP Spark and CIP Sprint boast high success rates, with 72% and 100% commercialization respectively by late 2025.

The Malaysian Research Accelerator for Technology and Innovation (MRANTI) commercialized 101 products from 2020-2025, underscoring sustained innovation momentum.

In aerospace, the Malaysian Space Industry Consortium (Masic) eyes collaborations with Japan's space agency and expanded international missions, signaling future growth across high-tech domains.