Malaysia is gearing up to design its own semiconductors, leveraging its strong ties with Beijing, according to Richard Chang, often referred to as China’s godfather of semiconductors.
Chang, the founder of Semiconductor Manufacturing International Corporation (SMIC), a partially state-owned Chinese company, emphasised that the strong bilateral relationship between Malaysia and China facilitates smoother technology transfers, according to Free Malaysia Today.
He drew parallels with Taiwan, a global leader in the semiconductor industry, which has significantly benefited from technology transfers from the US and Japan. Similarly, Malaysia could see technology transfers from China, Japan, Korea, Taiwan, and even the US, as there are no geopolitical restrictions.
Malaysia’s semiconductor industry already plays a crucial role in the global supply chain, contributing 13% to the world’s back-end semiconductor production. The country is a major hub for multinational electronics companies, particularly in Penang and Kedah, focusing on assembly, testing, and packaging.
Chang noted that Malaysia could collaborate with over 1,000 design companies if it ventured into semiconductor design.
He also mentioned that many Chinese companies, especially private firms, would be eager to work with Malaysia, as they are not bound by the same regulations as state-owned enterprises.
According to Chang, if Malaysia invites these private companies, 90% would likely accept the invitation. While establishing a semiconductor design house requires substantial investments, Chang suggested that interested parties seek seed funding from the government or the private sector.