Japanese media attention: Malaysia and China deepen cooperation in the "Silicon Valley of the East"
2024-08-11
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Japan's Nikkei Asian Review, August 8, original title: Malaysia and China deepen chip cooperation through joint expoMalaysia and China are seeking closer cooperation in semiconductors through a joint industry event, as Kuala Lumpur works to boost its chip industry and Beijing strengthens its own supply chain.
The first Asia-Pacific Semiconductor Summit and Expo will be held in Penang, Malaysia in October. Malaysian companies are expected to account for about 40% of the exhibitors, 30% from China, and the remaining 30% from other countries in the region. The event is expected to attract companies in the fields of chip design, manufacturing, materials and testing, as well as research institutions and investment funds.
In June, Malaysian Prime Minister Anwar Ibrahim reached an agreement with the Chinese government to strengthen ties between the two countries, an agreement that is credited with leading to the joint chip activity.
Penang Chief Minister Chow Kon Yeow told a news conference last week that the expo would promote "important exchanges in the semiconductor industry," according to local media reports. Chow said there had been an increase in inquiries from Chinese companies related to the supply chain and that Penang was "ready to welcome" them.
Malaysia has been nurturing the semiconductor industry since Intel entered the country in 1972, with Penang in particular being dubbed the "Silicon Valley of the East." However, the core of the local industry is labor-intensive back-end processes, which have relatively low added value.
In May this year, Anwar proposed a national strategy to promote the development of the semiconductor industry and allocated 25 billion ringgit (about 40 billion yuan) for this purpose. On August 6, Malaysia opened the largest semiconductor design park in Southeast Asia.
The upcoming expo aims to help Malaysia build a more advanced chip industry and strengthen its supply chain. Chinese companies participating are likely to also hope to establish closer ties with major semiconductor companies in the region. As tensions between Washington and Beijing over semiconductors increase, Malaysia is using its strategic neutrality to attract foreign investment. (Author: Shunsuke Tabata, etc., translated by Bai Xiao)
