Malaysia set to benefit from growing semiconductor industry

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Azman (left) is seen visiting vendors during the SEMICON Southeast Asia 2016 yesterday accompanied by Penang Chief Minister Lim Guan Eng. — Bernama photo

Azman (left) is seen visiting vendors during the SEMICON Southeast Asia 2016 yesterday accompanied by Penang Chief Minister Lim Guan Eng. — Bernama photo

GEORGE TOWN: Malaysia is poised to become the utmost beneficiary of the growing global semiconductor market as six out of 10 world’s largest semiconductor companies have established their presence here.

Quoting figures released by PriceWaterhouse Coopers, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the global semiconductor market was expected to grow at a compound annual growth rate of about 15 per cent from 2015 to 2019.

Recognising the growth prospects of the electronics and electrical (E&E) industry, particularly the semiconductor segment, he said the government was strengthening the development of the industry through its Economic Transformation Programme.

“The E&E industry is expected to create an incremental gross national income (GNI) impact of RM53.4 billion and create 157,000 new jobs by 2020,” Mustapa said at the launch of SEMICON Southeast Asia 2016 yesterday.

The text of his speech was delivered, on his behalf, by the Malaysian Investment Development Authority (MIDA) Chief Executive Officer Datuk Azman Mahmud.

Mustapa also said foreign investments in the E&E industry accounted for 85 per cent of the RM182 billion in total realised investments which created 780,000 job opportunities.

The semiconductor industry is the largest contributor comprising more than 40 per cent of Malaysia’s E&E exports.

In 2015, the E&E industry contributed 6.1 per cent to the Gross domestic product (GDP).

“It has contributed significantly to Malaysia’s growth, exports earnings, investments and employment with E&E products accounting for 35.6 per cent of total exports in 2015 “We are currently the world’s leading location for semiconductor assembly and test operations, accounting for more than 12 per cent of the world installed capacity,” he said.

Earlier, Azman, in his speech, urged Malaysian E&E industry players to upgrade their facility and embrace automation and smart manufacturing such as the Internet of Things in order to remain competitive.

“Return on investment in automation may not be apparent in the short-term but in the long-term, companies will enjoy greater performance, improved quality products and reduced dependency on unskilled labour,” he said.

The three-day SEMICON Southeast Asia 2016, attended by 7,500 delegates and about 200 companies, will offer a complete platform for engaging customers, suppliers, engineers and decision-makers from across the industry. — Bernama