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The semiconductor industry is vital for Malaysia, constituting 7% of GDP and a quarter of exports. Malaysia aims to expand its semiconductor role through the New Industrial Master Plan 2030, focusing on front-end activities.
However, challenges include reliance on unskilled foreign labor, resistance to automation, and a salary problem that hampers talent retention.
While successful local companies like Greatech, Pentamaster, and Walta contribute to a resilient semiconductor supply chain, addressing salary issues and promoting automation is crucial for Malaysia’s sustained growth in the semiconductor sector.
Investments from Intel, Infineon, and Texas Instruments indicate Malaysia’s potential for advanced semiconductor activities.
Extracted from an article written by BY LIEW CHIN TONG, Deputy Minister of Investment, Trade and Industry
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