Malaysia launches advanced semiconductor packaging push to climb global value chain

Malaysia has launched an ambitious national initiative to develop domestic capability in advanced semiconductor packaging within the next two years, marking a strategic move to move further up the global chip value chain, as reported by BERNAMA, a partner of TV BRICS.

The initiative is being driven through the establishment of the Malaysia Advanced Packaging Consortium (MAPC), a coordinated national framework bringing together government support and industry expertise under a “whole-of-nation” approach to strengthen the country’s high-tech manufacturing ecosystem.

Officials confirmed that the programme is supported by a combined investment of approximately US$39 million. The consortium brings together five domestic technology and engineering firms, each contributing specialised capabilities across semiconductor design, automation, instrumentation and advanced manufacturing processes.

According to Science, Technology and Innovation Minister Chang Lih Kang, the primary goal is to transition Malaysia beyond its traditional role in outsourced semiconductor assembly and testing and develop its own advanced packaging expertise – a critical segment in modern chip production.

He noted that advanced packaging is a highly specialised field currently dominated by only a small number of countries, and successful development would significantly enhance Malaysia’s technological sovereignty while generating new economic opportunities, investment inflows and skilled employment.

The government expects the initiative to strengthen the domestic semiconductor ecosystem, retain local talent and support long-term industrial upgrading. If successful, the project could also enable Malaysia to retain greater intellectual property ownership within its technology sector.

Officials emphasised that semiconductor development is a key pillar under the country’s broader national development strategy, with increasing focus on research and development alongside physical infrastructure investment.

Industry representatives highlighted that Malaysia already ranks among the world’s leading semiconductor exporters, but its packaging technologies have remained largely unchanged for decades. The new initiative aims to modernise this segment and position the country as a regional hub for high-value chip packaging, testing and export activities.