Wan Ahmad Tarmizi Wan Idris, MATRADE’s Trade Commissioner in Chennai speaks to R Arivanantham, Executive Editor, Navjeevan Express, on how MATRADE, the national trade promotion agency of Malaysia facilitates the global expansion for the Malaysian semiconductor companies to establish their presence overseas.
Interview excerpts:
How Malaysia is emerging as the World Semiconductor Hub?
With slightly less than 35 million population, Malaysia is becoming more important in the world’s semiconductor market as 7% of the total global semiconductor trade flows through the country, 13% of global chip assembly, testing & packaging is done in Malaysia and 6 out of 12 largest semiconductor companies have presence in Malaysia.
Could you please quote the global ranking of Malaysian electronic manufacturing services (EMS) companies?
6 out of 10 largest electronic manufacturing services (EMS) companies having operation in Malaysia and local champions such as V.S Industry Berhad, SKP, SMT Technologies and ATA IMS Berhad have been ranked in the global top 50 ranking of EMS providers in 2022.
What is the advantage of Malaysian automated test equipment (ATE) manufacturers over similar providers from other countries?
Malaysian automated test equipment (ATE) manufacturers are able to provide on-site equipment solutions and automation to end-customers with comparable machine functional performance which further contribute to cost competitiveness against similar providers from the US or Europe. Penang, the Silicon Valley of the East accounts for 5% of global semiconductor sales for the equipment and medical technology industries. These impressive figures and numbers attributed to the comprehensive ecosystem derived from the pro-business government policies relating to finance, taxation, intellectual property and free trade agreements. Established industry for the last 50 years, successful integration of leading multinational companies (MNCs) with local large corporations (LLCs), mid-tier companies (MTCs) and small and medium companies (SMEs), resulting in a robust and comprehensive ecosystem for the entire value chain.
What was the value of Malaysia’s electrical & electronics exports in 2023?
In 2023, Malaysia’s electrical & electronics exports (E&E) were valued at USD 127 billion, accounted for 47.3% share of total manufactured exports and 40.4% share of Malaysia’s total exports. The semiconductor devices, ICs, transistors and valves are the largest exports valued at USD 86 billion, accounted for 67.3% share of total E&E exports. Currently, almost 2/3 of Malaysia’s semiconductor exports are to Singapore, China, Hong Kong, USA and Taiwan.
How can Malaysia play its vital role in strengthening the supply networks for the India’s semiconductor manufacturing projects?
As India is embarking into a huge mission with aims to build a vibrant semiconductor and display ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design, international partnerships is a crucial factor for India’s advancement in this sector. Malaysia for instance, can play an important role in strengthening the supply networks for the India’s semiconductor manufacturing projects. The country’s extensive manufacturing ecosystem can help to secure the supply of technologies, materials and components needed for fabrication of semiconductors.
What is the role of MATRADE in helping the Indian semiconductor industries?
For this year, MATRADE will be coordinating the participation of international buyers during the SEMICON South East Asia (SEA), the largest congregation of electronics supply chain in South East Asia which will be held from 28 – 30 May 2024 and would like to invite Indian players to visit the event and to benefit from the programmes outlined during the 3 days event.
MATRADE Chennai will also organize a visit of Malaysian electrical & electronics companies to Bengaluru and Chennai in July this year to give more exposure to the companies on the India’s semiconductor market which forecasted to reach USD 100 billion by 2032.
