KUALA LUMPUR, Oct. 4 (Xinhua) -- Malaysia's semiconductor industry must diversify and shed its heavy reliance on multinational corporations and manufacturing capabilities to secure its position in the global market, especially in the face of potential disruptions, a Malaysian official said on Friday.
There is also the need to foster a more dynamic ecosystem that includes start-ups, innovative tech pioneers, and a blend of venture capital and private equity (PE) to drive growth, Economy Minister Rafizi Ramli said in his speech at the launch of the Malaysia Semiconductor Recruitment Day 2024.
"It is obvious that Malaysia sits very attractively in the global semiconductor and artificial intelligence scene. As much as this is good news, this position is not guaranteed," he said, adding that protectionist measures by some countries could potentially disrupt the industry.
He also said that local companies need to move up the value chain from back-end processes to front-end operations so that they not only assemble and test but also design chips.
"When we talk about integrated circuit (IC) design, it's about innovation, technology, research and development. Therefore, it is very much a start-up environment, which means that you require different kinds of people, different types of risk profiles and it requires different kinds of funding and business models. That's why we need venture capital and PE firms," he said.
For his part, Selangor state executive councilor for investment, trade and mobility Ng Sze Han said significant efforts have been made to move the industry from a mere manufacturing hub into a significant player in semiconductor design, including the establishment of Southeast Asia's largest integrated circuit design park.
"This vision embodies a forward-thinking strategy that prioritizes innovation and high-value job creation, ensuring that Malaysia remains competitive in an increasingly dynamic technological landscape," he said.
The Semiconductor Recruitment Day 2024 is organized by the Selangor state Information Technology and Digital Economy Corporation in collaboration with Malaysia Advanced Semiconductor Academy, connecting 25 major industry players and over 2,000 graduates who are seeking jobs in the sector. ■