Semiconductor companies in Malaysia are businesses involved in various stages of the semiconductor value chain, including integrated circuit (IC) design, wafer fabrication, assembly and packaging, testing, and equipment or material supply. Malaysia is a key global hub for semiconductor manufacturing and testing, particularly in Penang and Kulim.
Malaysia hosts more than 50 local and multinational semiconductor companies, which significantly contribute to the national economy, accounting for about 7% of Malaysia’s GDP and nearly 40% of total exports, mainly through the electrical and electronics (E&E) sector. Prominent players include Intel Malaysia, Infineon Technologies (Malaysia), and SilTerra Malaysia Sdn. Bhd.
List of Semiconductor Companies
What Are The List Of Semiconductor Companies in Malaysia?
These semiconductor companies include major multinational corporations as well as homegrown firms that contribute to the global semiconductor supply chain. Many of them are clustered in Penang, Kulim, and Selangor. The following are some of the leading semiconductor companies in Malaysia:
- Intel Malaysia – Focuses on manufacturing and assembly of microprocessors and other semiconductors; based in Penang and Kulim.
- Infineon Technologies (Malaysia) – Specializes in automotive and industrial semiconductors; operations in Melaka and Kulim.
- SilTerra Malaysia Sdn. Bhd. – A homegrown pure-play silicon wafer foundry located in Kulim Hi-Tech Park, Kedah.
- Texas Instruments Malaysia – Engaged in assembly and test operations for analog and embedded processing chips; located in Ampang, Selangor.
- Osram Opto Semiconductors (Malaysia) – Manufactures optoelectronic semiconductors, particularly LEDs; based in Penang.
- Renesas Semiconductor KL Sdn. Bhd. – Specializes in microcontrollers and automotive semiconductor solutions; located in Bangi, Selangor.
- TF AMD Microelectronics Sdn. Bhd. – A joint venture for chip assembly and testing services; based in Penang.
- ASE Malaysia (Advanced Semiconductor Engineering) – Provides semiconductor assembly and test services in Johor.
- Globetronics Technology Berhad – A Malaysian-based company providing integrated circuit testing and assembly; located in Penang.
- STMicroelectronics – Has operations through subcontractors and supply chain partnerships in Malaysia.
- Carsem Malaysia – Offers packaging and test services for semiconductors; located in Ipoh, Perak.
- Amkor Technology Malaysia – A global provider of semiconductor packaging and testing services with facilities in Muar, Johor.
- Inari Amertron Berhad – A local Bursa-listed company offering outsourced semiconductor assembly and test (OSAT) services; based in Penang.
- JCY International – While primarily in hard disk drive components, it also supports the semiconductor and electronics sectors.
Why Is Malaysia a Key Hub for Semiconductor Manufacturing?
Malaysia is a key hub for semiconductor manufacturing due to its strategic location, skilled workforce, and established infrastructure. The country accounts for 13% of global semiconductor packaging, assembly, and testing (STAT) services. Penang and Kulim Hi-Tech Park serve as major clusters, housing multinational corporations like Intel and local firms such as Unisem. The Malaysian Investment Development Authority (MIDA) reports that the semiconductor sector attracted RM45 billion in investments between 2020 and 2023, reinforcing its role in the global supply chain.
Which Major Semiconductor Companies Operate in Malaysia?
Major semiconductor companies in Malaysia include Intel Malaysia, Infineon Technologies, and SilTerra. Intel Malaysia operates one of its largest assembly and test facilities in Penang, employing over 10,000 workers. Infineon Technologies runs a wafer fabrication plant in Kulim, producing power semiconductors for automotive and industrial applications. SilTerra, a local foundry, specializes in wafer fabrication for communications and consumer electronics. These firms, alongside others like Texas Instruments and ASE Group, strengthen Malaysia’s position as a semiconductor manufacturing leader.
How Does Malaysia Contribute to the Global Semiconductor Supply Chain?
Malaysia contributes to the global semiconductor supply chain through manufacturing, assembly, and testing services. The country handles 20% of global semiconductor trade, with exports valued at RM387 billion in 2022. Companies like Unisem and Carsem provide critical backend services, including IC packaging and reliability testing, serving clients such as Apple and Qualcomm. The semiconductor supply chain in Malaysia supports industries ranging from automotive to consumer electronics, ensuring seamless production for global markets.
Does Government Policy Impact Malaysia’s Semiconductor Industry?
Government policy in Malaysia supports the semiconductor industry through incentives, infrastructure development, and workforce training. MIDA offers tax breaks and grants for high-tech investments, attracting firms like GlobalFoundries and Lam Research. The National Semiconductor Strategy aims to increase local participation in wafer fabrication and IC design, targeting RM100 billion in investments by 2030. Initiatives like the Penang Skills Development Centre (PSDC) train over 5,000 technicians annually, addressing industry talent demands.
What Are the Key Challenges Facing Semiconductor Companies in Malaysia?
Key challenges faced by semiconductor companies in Malaysia include supply chain disruptions, talent shortages, and intensifying regional competition. The COVID-19 pandemic exposed vulnerabilities in global logistics networks, causing delays in the shipment of raw materials and equipment, affecting firms such as Infineon Technologies Malaysia and others in Penang and Kulim.
According to a 2023 report by the Malaysia Semiconductor Industry Association (MSIA), the industry faces an estimated 15% shortfall in skilled engineers, especially in IC design and advanced packaging. This shortage has prompted closer collaboration between semiconductor firms and local universities to scale up technical education and training. Meanwhile, increased competition from regional players like Vietnam and Thailand is pushing Malaysia to strengthen its position in advanced packaging technologies, system-in-package (SiP) solutions, and front-end wafer fabrication to retain its global relevance.
How Is Malaysia Advancing Semiconductor Innovation?
Malaysia is advancing semiconductor innovation through research partnerships and specialised manufacturing capabilities. MIMOS, the national applied research centre, collaborates with startups and international institutions, most recently acquiring advanced TCAD (device simulation) software through partnerships with Xiamen University and GMPT, to bolster next‑generation chip‑materials research.
SilTerra’s foundry in Kulim (at Kulim Hi‑Tech Park) operates on 8‑inch wafers and is expanding capacity and technology readiness; while a new 12‑inch fab is planned in Malaysia (a joint effort by DNeX and Foxconn), it’s not yet operational .
Infineon in Kulim runs what is now the world’s largest silicon carbide (SiC) power‑chip fab on 200 mm wafers — launched in 2024 — and is part of its “Kulim 3” extension to include compound‑semiconductor lines for SiC and gallium nitride (GaN) on both 150‑ and 200‑mm platforms . Infineon has also achieved breakthroughs in 300 mm GaN wafers globally, aligning with these expansions .
These strategic efforts support Malaysia’s alignment with global semiconductor trends, which in turn feed demand for advanced packaging, compound semiconductors (SiC/GaN), and smaller, more efficient nodes. Overall, the statement is accurate with these added clarifications on operational status
What Are the Future Growth Areas for Malaysia’s Semiconductor Industry?
Future growth areas for Malaysia’s semiconductor industry include advanced packaging, electric vehicle (EV) chips, and factory automation.
Advanced packaging technologies , especially fan-out wafer-level packaging (FOWLP) and system-in-package (SiP), are seeing rapid expansion in Malaysia. ASE Group, through its Malaysian operations in Penang, has recently launched Plant 5 to enhance these technologies and integrate AIoT-powered smart manufacturing on the factory floor.
Electric vehicle chips, which is power semiconductors, are increasingly important. Infineon’s Kulim plant—home to what will be the world’s largest 200 mm SiC power-chip fab—is expanding as part of a €5 billion investment to strengthen its position in EV powertrains.
Factory automation initiatives are underway. Intel is implementing smart-factory systems leveraging Industry 4.0, including automated material handling and AI-driven yield optimisation, to boost productivity, citing a target of ~30% efficiency gains by 2025.
For professionals seeking opportunities in this dynamic sector, Majikan.my provides job listings and career resources tailored to the semiconductor industry. Employers can leverage the platform to connect with skilled talent and support workforce development.