STRONG regional partnerships can drive growth, innovation and advancements in the semiconductor sector.
By leveraging each other’s expertise and ecosystems, stakeholders will be better positioned to stay at the forefront of this rapidly evolving industry.
Penang infrastructure, transport and digital committee chairman Zairil Khir Johari said this while launching 2024 Asia-Pacific Semiconductor Summit and Expo (APSSE) in Penang.
The recent two-day event held at Setia SPICE Convention Centre in Bayan Lepas, Penang, brought together over 30 exhibitors and 600 delegates from nine countries.
It was organised by Malaysia Semiconductor Industry Association (MSIA) and Penang government, in partnership with Shanghai Fengmi Cloud Media Technology Co Ltd.
Zairil said the semiconductor industry was the backbone of the modern economy, powering everything from smartphones to electric vehicles and machinery.
“There is almost nothing today that doesn’t have a chip in it.
“And with changes brought on by the 4th Industrial Revolution, potential applications would only continue to expand.”
He said the global semiconductor industry was valued at US$544bil (RM2.36tril) in 2023, and this was projected to exceed US$1tril (RM4.34tril) by 2030.
“There are opportunities for everyone, which makes events like APSSE 2024 a good platform for industry players and government to exchange ideas and explore collaborations,” Zairil said in his opening address.
He highlighted the long-standing and successful collaborations between Malaysian and Chinese firms as proof that such regional partnerships could be mutually beneficial.
“Indeed, 2024 marked the 50th anniversary of bilateral diplomatic relations between the two countries.
Zairil (front, centre), Wong (second from right) and other delegates observing a virtual reality application by one of the exhibitors.
“Around half of APSSE 2024’s exhibitors are from China.
“Together, we can drive innovation, enhance global supply chain resilience and shape the future of the semiconductor landscape.
“Malaysia is committed to deepening economic ties with China, especially in advancing technologies such as semiconductors, electric vehicles and green energy,” he added.
Zairil also praised various stakeholders for keeping the industry resilient in spite of various challenges in recent years, such as the pandemic and global geopolitical tensions.
“We have long been a key player in the semiconductor value chain, contributing approximately 13% of global assembly, testing and packaging. Of that number, almost half comes from Penang,” he said.
From 2019 to 2023, Zairil revealed that Penang attracted RM170bil of foreign direct investments, which was more than double the preceding decade.
“This showed how much growth was achieved in the last five years.
“We have become a trusted partner of many leading global firms,” he added before touring exhibitor booths in the arena.
MSIA president Datuk Seri Wong Siew Hai said the semiconductor industry was a cornerstone of the local economy, contributing over 40% of total exports in the electronics sector.
“With over 50 years of experience in the industry, a strategic location, strong ecosystem, cost-competitiveness, skilled talent and business-friendly government, we have been able to attract billions of ringgit in investments from tech giants across the world.
“But competition is intense and we must keep pace.
“Government initiatives like the National Semiconductor Strategy (NSS) and New Industrial Master Plan (NIMP) 2030 will allow us to move the industry into higher value areas.
“MSIA recently launched the Advanced Technology Equipment Cluster (ATEC) to consolidate expertise to meet ever changing demands and keep us as a market leader,” said Wong.
He noted that APSSE 2024 was the first time many of the participating Chinese firms had exhibited outside their country.
He said most people took it for granted, but everything they use had semiconductor components of varying complexities inside.
“Mobile phones and smart TVs are the most obvious examples. Other things like your air-conditioner remote, ceiling fans, water heater and even the thermal flask you use to make a cup of coffee, need such components to operate.
“An electric vehicle has over 3,000 semiconductors.
“It’s a key component of green energy. If you live in a rural area without running power, the solar panels that allow you to power things also need semiconductors.
“Go to any hospital and all the medical devices used to test you have lots of semiconductors inside.
“Global e-commerce would not be possible either without these tiny chips.
“The only difference is that we’re constantly coming up with newer materials that allow each piece to perform more functions at a lower cost,” Wong added.
ACM Research (Shanghai) Inc chairman Dr David Wang Hui said such globalisation would continue to be a fundamental driving force for the industry.
“Many Chinese companies are interested in coming to Malaysia.
“This would not only bring investment and create local jobs, but also drive innovation, technology, product quality and better manufacturing systems,” he added.
The APSSE event featured a series of panel talks, with topics on “Global Semiconductor Outlook”, “Transitioning from Local to International Outbound Investments”, “Artificial Intelligence”, “Asia-Pacific Semiconductor Strategies”, “Advancing ESG Through Innovations”, “Intellectual Property”, “Advanced Packaging” and “Strategies for STEM Talent Development”.
Business matching sessions and tours of several industrial sites were also held.
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