Kuala lumpur: Malaysia aims to develop domestic capability in advanced semiconductor packaging within two years through the establishment of the Malaysia Advanced Packaging Consortium (MAPC). Science, Technology and Innovation Minister Datuk Chang Lih Kang announced the formation of the consortium, which is a collaboration among five local companies and the government. This initiative is supported by a matching grant and a 'whole-of-nation' approach, integrating public and industry efforts to enhance advanced packaging capabilities.
According to BERNAMA News Agency, the five companies involved in the consortium are SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd, and NSW Automation Sdn Bhd. Each company brings specific strengths to the sector. The government has sanctioned a RM92 million research and development (R and D) grant over a 24-month period, with the industry contributing an additional RM93 million, totaling RM185 million for the program.
The main objective of this initiative is to enable Malaysia to ascend the semiconductor value chain. As explained by Minister Chang, while Malaysia already possesses a robust foundation in semiconductors and electrical and electronics, it has predominantly focused on outsourced semiconductor assembly and testing (OSAT). He made these remarks following a working visit to three consortium companies, accompanied by Economy Minister Akmal Nasrullah Mohd Nasir, Deputy Investment, Trade and Industry (MITI) Minister Sim Tze Tzin, and Academy of Sciences Malaysia president Tengku Datuk Mohd Azzman Shariffadeen.
Chang emphasized that the initiative is expected to bolster local firms, attract investment, generate economic returns, create jobs, and help retain local talent. He further noted that achieving the targets within the two-year timeframe could result in a mutually beneficial outcome for both the government and industry.
Currently, Malaysia lacks the capability to produce advanced packaging independently. However, by fostering collaboration between public and private sectors, it aims to develop this capability. Successful implementation of advanced packaging would ensure that intellectual property (IP) remains within Malaysia and unlock substantial business opportunities, thereby accelerating economic growth.
In a separate statement, Akmal Nasrullah highlighted that semiconductor development is a pivotal sector under the 13th Malaysia Plan (13MP), particularly in high-impact and high-value industries. He stressed that national development should encompass more than just physical infrastructure and must include investment in R and D, with commitments from both government and private sectors.
Deputy Minister Sim added that Malaysia is renowned for its OSAT capabilities, but its packaging technology has largely remained traditional for over five decades. MITI supports the MAPC consortium to empower local companies in developing their own IP rather than relying on multinational corporations. He stated that Malaysia is currently the world's sixth-largest semiconductor exporter, and the development of advanced packaging would strengthen the ecosystem and national IP as the world enters the AI supercycle. If successful, Malaysia could establish itself as a key hub for semiconductor packaging, testing, and export.
The initiative is part of the National Semiconductor Strategy (NSS), which emphasizes advanced packaging as a crucial component.