5.6 Billion USD National Semiconductor Strategy
 
WHAT 

 

Malaysia ranks among the world’s top ten semiconductor manufacturing nations, contributing roughly 7% of global semiconductor trade. It plays an especially significant role in back‑end manufacturing - assembly, packaging, and testing - where it accounts for about 13% of global capacity. The sector is now a cornerstone of the national economy, representing approximately 25% of Malaysia’s GDP.

Malaysia’s semiconductor growth trajectory remains strong across multiple upstream and midstream segments:

  • Foundry Market: Expected to grow from USD 830 million in 2025 to USD 1.3 billion by 2030, at a CAGR of 9.5%, supported by expansions in specialty and advanced-node fabrication.
  • Semiconductor Equipment Market: Projected to rise from USD 2.2 billion in 2023 to USD 3.76 billion by 2030 (CAGR 8.1%), driven by front-end fab investments, OSAT modernization, and R&D-linked upgrades.​ 

The announcement of a 5.6 billion USD National Semiconductor Strategy in 2024 is a show of commitment by the Malaysian government to elevate its semiconductor prowess to a new height, by advancing its already robust OSAT and nurturing capabilities in chip design and wafer fabrication. Since the launch of the NSS, Malaysia has secured over USD 13 billion in semiconductor investments as of mid-2025. 

The robust activity in the semiconductor sector has a cascading effect on the sub-value chain, which is primarily composed of Malaysian companies. To enhance their competitiveness and seize a larger market share, these companies are expanding their operations and extending their reach into upstream activities, which unveils substantial opportunities for collaboration with technology partners.​ 

HOW 

Malaysia’s semiconductor industry is accelerating rapidly from a strong foundation, driven by global supply‑chain shifts, government incentives, and billions in new investments. This momentum creates a strategic opening for Swedish companies, especially those operating in advanced manufacturing, industrial automation, clean energy solutions, chip design tooling, and specialized engineering services.

 

CONTACT US 

For more information contact Steve Chai at steve.chai@business-sweden.se.