Malaysia's semiconductor play heats up as investor interest surges
With RM63 billion in committed investments, a growing base of local champions and closer Asean alignment, analysts said Malaysia is steadily positioning itself as a neutral yet indispensable node in the global semiconductor ecosystem.
"We are encouraged to see that the NSS is gaining investor traction, institutional support and regional momentum," CIMB Securities said in a flash note.
Launched in May 2024, the NSS aims to transform Malaysia from a "Made in Malaysia" base to a "Made by Malaysia" hub by deepening capabilities in integrated circuit (IC) design, research and design as well as advanced packaging.
CIMB Securities said the strategy has drawn high-impact projects from global players such as Infineon, Carsem, NXP, Syntiant and Plexus.
The research house said Malaysia also aims to develop 10 local semiconductor firms with revenues exceeding US$1 billion and 100 firms with revenues exceeding RM1 billion.
"The government has identified 13 Malaysian-based companies across the semiconductor value chain as key beneficiaries, including Carsem (MPI), Inari Amertron Bhd, Pentamaster Corporation Bhd, ViTrox Corporation Bhd, and Kelington Group Bhd.
"In addition, promising IC design and services firms like Oppstar Bhd, SkyeChip, Infinecs, and Experior are also being nurtured to spearhead Malaysia's next phase of semiconductor growth," it said.
CIMB Securities said as Asean chair this year, Malaysia is also leading the charge on regional supply chain integration through the Asean Integrated Semiconductor Supply Chain Framework.
"Malaysia's transition from a back-end assembly base to a design-to-packaging semiconductor hub remains a work in progress.
"However, we are encouraged to see that the NSS is gaining investor traction, institutional support, and regional momentum," it said.
Its top stock picks in the local outsourced semiconductor assembly and test (OSAT) space are Inari Amertron and Malaysian Pacific Industries Bhd, with ViTrox also cited for exposure to the automated test equipment segment.
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