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Spotlighting Southeast Asia’s Electronics Supply Chain


The Malaysia Ministry of International Trade & Industry (MITI), Malaysian Investment Development Authority (MIDA) and InvestPenang are eager to promote electronics manufacturing in the country. They are partnering to organise a global event for electronics manufacturing and supply chain.

The concentration of much of the world’s semiconductor manufacturing capabilities in Southeast Asia has attracted more global players to the region, as global electronics supply chains are being reshaped by geopolitical forces. According to Linda Tan, the President of the global industry association representing the electronics manufacturing and design supply chain, the timing is ideal for the region to strengthen its position as a vital hub for electronics manufacturing and deepen its integration with global value chains.

The Chief Executive Officer of the Malaysian Investment Development Authority stated that Malaysia has immense potential to expand its robust semiconductor ecosystem and benefit from global demand as the region’s semiconductor hub.

The manufacturing sector, which continues to contribute significantly to the country’s economy, has attracted a steady inflow of high-quality investments, making Malaysia a top investment destination in the region. In 2022, the sector registered a total of RM 84.3 billion (US$ 19.1 billion), accounting for 31.9% of total approved investments in various economic sectors.

The electrical and electronics (E&E) industry emerged as the top-performing industry within the manufacturing sector, receiving a total of approved investments of RM 29.3 billion (US$ 6.6 billion). This achievement highlights Malaysia’s commitment to maintaining its strong position as a vital player in the global semiconductor industry.

The theme of the event is “Boosting Agility and Resiliency for the Electronics Supply Chain” and will address the challenges posed by the current economic downturn and ongoing disruptions, and explore ways to build a more robust supply chain.

Global leaders in the industry will gather to examine strategies for the electronics industry to strengthen its supply chain and enhance its agility and resiliency. Industry leaders explore ways to capitalise on Southeast Asia’s strengths, boost global supply chain resilience, and position the industry for future growth and innovation. There will be vital discussions on crucial areas of semiconductor industry growth such as sustainability, smart manufacturing, smart mobility, smart MedTech, and workforce development.

The Chief Minister of Penang stated that the upcoming event aligns with Penang’s longstanding efforts to enhance its competitiveness in the global arena. Penang has established a significant presence in the semiconductor industry and is recognised for its expertise across the value chain.

InvestPenang, the state’s investment promotion agency, is committed to supporting the growth of emerging subsectors and expanding the semiconductor industry’s scope in Penang. Through these efforts, the state aims to strengthen its semiconductor ecosystem and offer a diverse portfolio of capabilities.

According to market research, the global semiconductor market had a size of US$ 527.88 billion in 2021 and is expected to grow from US$ 573.44 billion in 2022 to USD 1,380.79 billion in 2029, with a CAGR of 12.2% during the forecast period.

The global semiconductor market saw a growth of 6.8% in 2020 compared to the previous year. Despite the unprecedented and significant impact of the global COVID-19 pandemic, the semiconductor industry experienced positive demand worldwide, surpassing pre-pandemic levels.

The growth of the semiconductor market can be attributed to the increasing consumption of consumer electronics devices worldwide. Furthermore, the emergence of artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML) technologies are providing new opportunities for market development as these technologies aid memory chips in processing large amounts of data in less time. Additionally, the rising demand for faster and more advanced memory chips in industrial applications is expected to drive market growth during the forecast period.


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