KUALA LUMPUR: The government aims to attract at least RM500 billion in investments for Phase 1 of the National Semiconductor Strategy (NSS) which is spearheaded by the International, Trade and Industry Ministry (MITI).
In his keynote address at the launch of Semicon Southeast Asia 2024, Prime Minister Datuk Seri Anwar Ibrahim said the investments were among the five targets from NSS that was launched in April, this year.
He also said that Phase 1 of NSS would involve domestic direct investment (DDI) focusing on Integrated Circuit (IC) design, advanced packaging and manufacturing equipment and foreign direct investment (FDI) focusing on wafer fabs and manufacturing equipment.
"For the second target, we want to establish at least 10 local companies in the design and advanced packaging with revenues between RM1 billion to RM4.7 billion, and at least 100 semiconductor-related companies with revenues close to RM1 billion, creating higher wages for Malaysian workers by Phase 2," he said.
Present was International, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
At the same time, Anwar added that other targets will also see Malaysia being developed as a global research and development (R&D) hub for semiconductors that feature world-class universities, corporate R&D and centres of excellence.
The government, he said, will also train and upskill 60,000 high-skilled Malaysian engineers and allocate at least RM25 billion (USD 5.3 billion) in fiscal support to operationalise the NSS with targeted incentives.
Meanwhile, the prime minister also said that NSS will be structured in three phases, where Phase 1 would leverage Malaysia's industry existing capacity and capabilities to support the modernisation of outsourced semiconductor assembly and test (OSAT).
"The second phase will focus on the cutting-edge logic and memory chips design, fabrication, and testing.
"(And) the third phase is to continue doubling down by supporting the development of world-class Malaysian semiconductor design, advanced packaging and manufacturing equipment firms."
Anwar also said in reaffirming Malaysia's commitment to becoming a global leader in the semiconductor industry, the National Semiconductor Strategic Task Force (NSSTF), with the Collaborative Research in Engineering, Science and Technology (Crest), an agency under MITI, would serve as the secretariat that focuses on fostering innovation, enhancing research and development capabilities, and driving the commercialisation of semiconductor technologies.
"Ultimately, the NSS is a means for Malaysia to advance and democratise technology for the good of all humanity. To achieve this, we need your support, both from those here today and others beyond this room.
"Whether you are sitting here as an investor, sovereign wealth fund, manufacturer, engineer, or policymaker, you are welcome to join us in this transformative journey towards a more inclusive, resilient and impactful semiconductor future for Malaysia and the world."