Malaysia’s RM63b Chip Strategy Gains Traction, But MBSB Says More Time Needed to Climb Value Chain

MBSB Research is maintaining a neutral outlook on Malaysia’s technology sector despite notable progress under the National Semiconductor Strategy (NSS), announced in May 2024. Following the ASEAN Semiconductor Summit 2025, Malaysia has secured RM63 billion in semiconductor investments—RM59 billion from foreign investors and RM5 billion domestically. Key projects include Infineon’s SiC power fab and Carsem’s energy-efficient advanced packaging. Over 13,000 skilled workers have been trained, supported by national talent programmes and growing R&D hubs in Penang, Selangor, and Sarawak. The ASEAN semiconductor market was valued at over USD31 billion in 2023 and is projected to exceed USD52 billion by 2032. To further strengthen Malaysia’s position in the global supply chain, the government introduced three new measures: unlocking catalytic capital for R&D, forming the ASEAN Framework for Integrated Semiconductor Supply Chain (AFISS) for deeper regional collaboration, and closing the talent gap through academia-industry partnerships. MBSB notes that while progress is evident, more time is needed to move up the value chain.