Malaysia is the world’s sixth-largest semiconductor exporter with their chip industry rising with major investments and technological advancements

SkyeChip designs AI chips for data centers, automotive and connected devices and boasts a dozen or so of its own patents on next-generation chips and other technologies.

Malaysia has re-emerged as a significant hub for chip investment, attracting attention from companies like Intel and Infineon Technologies. These companies are diversifying their production footprints by investing in the country.

 

But Malaysia’s challenge is how to grow talent within Malaysia and to attract talents from abroad to fill the labour shortage gap.

Intel: In 1972, Intel established its first overseas assembly plant in Penang, Malaysia. Since then, Malaysia has played a crucial role in the global chip industry. Currently, it stands as the world’s sixth-largest semiconductor exporter. Remarkably, Malaysia contributes over 20% of U.S. semiconductor imports by value annually, surpassing both Taiwan and South Korea.

Infineon Technologies: Infineon is a top European chipmaker that is making significant strides in Malaysia. The company is constructing a $7 billion facility in Kulim, which is set to become the world’s largest site for silicon carbide (SiC) chips used in electric cars and electronics. This investment is a strategic move to capitalize on the growing demand for SiC-based semiconductors.

Despite its historical significance in the industry, Malaysia faced challenges in competing with South Korea and Taiwan in the more technologically advanced areas of chip manufacturing. Unlike these countries, Malaysia has not produced its own versions of giants like Samsung Electronics or Taiwan Semiconductor Manufacturing Co. (TSMC). However, the U.S. remains a dominant player in chip design.

CHIPS have a positive impact on the environment when designed and utilized thoughtfully by promoting energy efficiency, reducing emissions, and supporting sustainable technologies.

 

Improved Efficiency:

The continuous improvement in chip efficiency benefits various industries. As chips become more efficient, devices consume less power, leading to reduced energy consumption and lower carbon emissions. This efficiency gain allows industries to achieve their own decarbonization goals more rapidly.

Reduced Emissions:

By enhancing chip performance, companies can design more energy-efficient devices. These devices, in turn, contribute to lower emissions during their lifecycle. For example, manufacturing devices with reuse, repair, resale, refurbishment, and remanufacturing in mind can significantly cut emissions and material losses.

 Flexible Chips:

Unlike traditional silicon chips, flexible chips offer “good enough” performance at a fraction of the cost and environmental impact. Their flexibility allows them to be used in scenarios where conventional electronics would not be cost-effective or feasible. This adaptability contributes to sustainability by minimizing waste and resource consumption.

 Integral to Clean Energy:

Semiconductors play a crucial role in clean energy technologies such as electric vehiclessolar arrays, and wind turbines. As the world transitions toward renewable energy sources, chips enable efficient energy conversion and management.

Malaysia’s CHIP Investment opportunities are on the cusp of AI integration in every aspect of our lives… globally. 

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