Kuala Lumpur: Taiwan is well positioned to support Malaysia in developing data centres, particularly in the area of information and communications technology (ICT), said Taiwan External Trade Development Council (TAITRA) deputy executive director Keven Cheng. He emphasized that Malaysia is a major global hub for semiconductor packaging and testing, as well as electronics manufacturing, while Taiwan possesses leading advantages in chip design, integrated circuit (IC) fabrication, and ICT equipment, creating a complementary relationship between the two economies.
According to BERNAMA News Agency, Cheng highlighted that Malaysia aims to become a regional hub for data centres, and Taiwan can play a crucial role in supporting this ambition. Bilateral trade between Taiwan and Malaysia reached a record high of RM176.1 billion in 2024, largely involving ICs, electronic components, ICT parts, and servers. Cheng expressed optimism about strengthening collaboration at a press conference following the Taiwan Expo 2025 soft launch.
Cheng also noted Malaysia’s proactive efforts to position itself as Southeast Asia’s digital hub, attracting global tech giants such as Foxconn, Amazon, and Google. This trend presents opportunities for Taiwanese data centre and AI solution providers to explore and expand their presence in the Malaysian market. Taiwanese electronics company Pegatron Corporation is among those investing in Malaysia, having expanded its investment by establishing new production facilities to boost consumer electronics manufacturing capacity-an indication of deepening bilateral collaboration in the electronics sector.
Furthermore, Cheng mentioned that Taiwan focuses on software development, and there is significant potential for technology exchange and mutually beneficial opportunities in Malaysia. The two countries enjoy close industrial supply chain cooperation, with around 1,700 Taiwanese companies operating in Malaysia, primarily small and medium-sized enterprises active in sectors such as semiconductor packaging and testing, electronics, smart logistics, servers, data centres, and cloud software services. About 600 of these companies are concentrated in Penang.
Cheng cited data indicating that Taiwan’s exports of integrated circuits to Malaysia grew by over 13 percent in 2024, reflecting Malaysia’s strong demand for packaging, testing, and electronic assembly services. He added that cloud services and data centres have emerged as promising new areas of cooperation.