📊Executive Summary

Malaysia is aiming to enhance its position in the semiconductor value chain by moving beyond its traditional role in outsourced assembly and testing (OSAT) to higher-value activities such as integrated circuit (IC) design and advanced packaging. The government has launched initiatives like the Malaysia Advanced Packaging Consortium to develop advanced packaging technologies, which are crucial as demand for AI chips surges. This strategic shift is expected to improve Malaysia's share of the semiconductor industry's value, which currently stands at only 6%. The National Semiconductor Strategy aims to cultivate more homegrown companies in IC design and advanced packaging, reflecting a broader trend in the global semiconductor market....