Malaysia Launches Advanced Packaging Consortium to Boost Semiconductor Industry

TL;DR

• Government partners with five local semiconductor firms for Advanced Packaging Consortium
• Aims to move from back-end work to high-end technical roles
• Stakeholders include Academy of Sciences Malaysia and Mimos
• Part of Malaysia’s strategy to capture higher value in semiconductor supply chain

Malaysia Pushes Up the Semiconductor Value Chain

The Malaysian government is taking bold steps to elevate the nation’s semiconductor industry from back-end, labor-intensive work to high-value technical manufacturing.

New Consortium Formation

Science, Technology, and Innovation Minister Chang Lih Kang announced the formation of the Advanced Packaging Consortium, bringing together five local semiconductor firms with academic experts from the Academy of Sciences Malaysia (ASM) and Malaysia’s Applied Research and Development Centre (Mimos).

Moving Up the Value Chain

Currently, Malaysia plays a significant role in semiconductor packaging and testing – the back-end of chip manufacturing. However, this segment offers lower profit margins compared to design and advanced manufacturing. The new consortium aims to change that by focusing on advanced packaging technologies that enable more powerful and efficient chips.

This initiative aligns with Malaysia’s broader strategy to attract more high-tech investments and position itself as a key player in the global semiconductor supply chain, particularly as tensions between US and China drive companies to diversify their manufacturing bases.

Conclusion

The Advanced Packaging Consortium represents Malaysia’s commitment to moving up the semiconductor value chain. By partnering with local firms and research institutions, the country aims to develop expertise in advanced chip packaging – a critical technology for next-generation electronics.

Source: Malaysiakini