Malaysia, Netherlands Ink Landmark Deal to Boost Semiconductor Supply Chain Resilience

KUALA LUMPUR/THE HAGUE, Sept 6 – Malaysia and the Netherlands have signed a landmark Memorandum of Cooperation (MoC) to strengthen collaboration in the semiconductor industry, reinforcing Malaysia’s position as a global hub and the Netherlands’ leadership in high-tech chip manufacturing and innovation.

The MoC was formalised today by Malaysia’s Minister of Investment, Trade and Industry, Tengku Datuk Seri Utama Zafrul Aziz, and Dutch Minister of Economic Affairs, Vincent Karremans, in The Hague. The initiative stems from discussions between the Prime Ministers of both nations during the Dutch leader’s official visit to Kuala Lumpur in 2023.

Semiconductor Supply Chain

The agreement aligns with Malaysia’s National Semiconductor Strategy (NSS), which aims to bolster global supply chain resilience, drive technological advancement, and fuel sustainable economic growth. A key feature of the partnership will be the Annual Bilateral Semiconductor Dialogue, providing a structured platform to review progress, share policy insights, and coordinate efforts in talent development, research and development, and technology sharing.

“This partnership reflects our shared commitment to strengthening Malaysia’s assembly, testing, and packaging while moving up the value chain by leveraging the Netherlands’ expertise in advanced chip manufacturing,” Tengku Zafrul said at the signing. “Together, we will build a resilient, future-proof semiconductor ecosystem that benefits both nations and the global economy.”

The collaboration highlights the growing need to diversify global supply chains amid rapid technological shifts and market uncertainties. It also supports Malaysia’s NSS target of attracting RM500 billion in investments, nurturing high-value local companies, and training 60,000 engineers by 2030.

The Ministry of Investment, Trade and Industry (MITI) said the agreement marks a major step towards securing Malaysia’s role as a key player in global semiconductor supply chains while expanding opportunities for innovation and growth.

Business News

Staff Writer

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