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January 12, 2024
Malaysia focuses on semiconductor manufacturing for EV growth

Malaysia is making a big push into semiconductor manufacturing with aims of meeting skyrocketing demand from the electric vehicle (EV) industry.

The country’s International Trade and Industry Minister, Zafrul Aziz, unveiled a strategy yesterday focused on boosting Malaysia’s production of chips critical for powering EVs and autonomous vehicles. Aziz stated the global pivot towards EVs represents a “tremendous opportunity” for Malaysia to excel as a major chip supplier.

Aziz has set out a plan to prosper from its burgeoning supply of semiconductors thanks to the insatiable demand for the product at present.

As reported by CNBC, he underlined how semiconductors are relied upon in modern auto manufacturing, but especially for EVs which can require up to 15,000 chips whilst a standard car would need around 5000.

Aziz detailed how they already supply the components “in the billions” and further outlined the scope for significant growth, with an ambition to lure the likes of Tesla to Malaysia for major expansion.

Such companies “want to realign to ensure the security of (their) supply chain, the resiliency of the supply chain is there, so they are coming closer to Malaysia and we are inviting many EV makers to come,” he stated.

Tesla currently enjoys a solid relationship with Malaysia, acting as one of its key charging station providers whilst it also counts on the Southeast Asian country for its supply chain.

Mayalysia’s EV market

Minister Aziz had previously spoken on his belief that EVs would act as a catalyst for manufacturing exports in Malaysia and as an active player in the market, they need to exploit the opportunity.

To deliver that objective, the government has set up a national semiconductor task force.

As part of their vision, they intend to dedicate resources to the front end of the chips industry, which involves wafer fabrication and engraving circuits, and not just the back end with its concentration on the assembly of integrated circuits and packaging.

The semiconductor business is said to account for 7% of  Malaysia’s GDP and half of its exports, on the back of a solid manufacturing background.

“The good thing about Malaysia is this industry started in the early 70s so it’s been here 50 years, and the foundation is strong for us today to move up the value chain,” added Zafrul Aziz.

Image credit, Umar Mukhtar,

The post Malaysia focuses on semiconductor manufacturing for EV growth appeared first on ReadWrite.


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