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Malaysia promotes itself as a chip company-friendly location amid U.S.-China tensions


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Malaysia chip company-friendly location U.S.-China tensions

As chips gain more significance and become vital for consumer electronics and advanced technologies, governments worldwide are offering substantial financial benefits to attract chip manufacturing centers.

Malaysia is not an exception. A Southeast Asian country is trying to attract more investment from countries on different sides of the geopolitical divide, especially because it already has a strong semiconductor industry.

Prime Minister Anwar Ibrahim emphasized Malaysia's advantages at the Semicon Southeast Asia conference in Kuala Lumpur.

Anwar announced on Tuesday that he will help create a safer and stronger global semiconductor supply chain by offering Malaysia as a neutral and non-aligned location for semiconductor production.

Malaysia aims to attract at least 500 billion Malaysian ringgit ($107 billion) in new investment with its new National Semiconductor Strategy. Under the new plan, ten new local semiconductor companies will be created, focusing on advanced packaging and design. The companies will hire 60,000 skilled local engineers and earn annual revenues between 1 billion and 4.7 billion ringgit ($212.7 million to $1 billion). Anwar did not provide a deadline for achieving the goals. The Malaysian government plans to offer 25 billion ringgit ($5.32 billion) in incentives to support the growth of the country's semiconductor industry.

Anward had announced plans to build the biggest integrated circuit design park in Southeast Asia in Selangor State.

Malaysia has a long history in the semiconductor sector. Government statistics indicate that the nation provides 13% of the world's chip packaging, assembly, and testing services. The last phases in the production of semiconductors are assembly and packaging. International chip manufacturers with operations in the nation include Germany's Infineon and Intel.


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