KUALA LUMPUR, May 30 — Taiwan-based semiconductor companies are optimistic about business prospects in Malaysia's semiconductor industry, given its solid foundation and thriving semiconductor ecosystem that offers potential long-term growth.

Semiconductor integrated circuit (IC) design solutions provider, FusionSIP Technology Pte Ltd’s general manager, Eigen Fu said the company is planning to open its first design service centre in Malaysia this year.

He said the company is in the midst of surveying potential locations that would house its centre in the country.

"We want to set up the biggest design centre in South-east Asia, maybe somewhere near Kuala Lumpur due to its logistics advantages," he told Bernama on the sidelines of SEMICON Southeast Asia 2024.

Fu added that FusionSIP also plans to collaborate with local universities while at the same time providing the students with employment opportunities and hire local workers to strengthen its presence in the country.

Recently, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia is offering itself as the "bridge” to connect countries open to tech collaboration.

Anwar said Malaysia is already a melting pot of local and international tech talent, making it easy for companies rooted here to be regionally and globally competitive.

Meanwhile, another Taiwanese semiconductor player, Delta Electronics Inc, hopes its newly launched product DIASECS solution will be widely used in semiconductor facilities in Malaysia.

DIASECS is Delta's comprehensive solution for semiconductor equipment communication and control, complementing the company's existing solution products, said Delta Electronics Industrial Automation country manager Quah Soon Kooi.

He said the solution could be used in semiconductor's equipment interface and communication protocol for equipment-to-host data communications, such as the semiconductor equipment communication standard.

Delta Electronics, through its subsidiary Eltek Power (Malaysia) Sdn Bhd, has been present in Malaysia since 2016.

At the same time, computer supplier company, Bossmen Inc’s manager Lewis Liu also expressed his optimism over the tremendous potential for business growth in Malaysia.

He noted that several international giants have set foot in Malaysia, including Intel Corporation and Micron Technology from the United States (US), Bosch from German, and ASE Group from Taiwan.

"Concurrently, the demand for advanced storage solutions is expected to increase significantly," he said when met at SEMICON Southeast Asia 2024, the largest congregation of supply chain companies in the semiconductor and electronics industry.

Liu said Bossmen's innovative technology — the Nanoscale Photomask Storage Cabinet — was a highlight during the three-day event which ends today.

"It provides each photomask pod-on-die (POD) with purified intake air, constant humidity, temperature, and nitrogen flow, along with radio frequency identification (RFID) personnel access management and POD load/unload selection to meet Class 1 clean room standards for nanoscale photomask storage," he said.

He added the technology comes with five essential features — filtration, monitoring and control, active purge, alarm, and security — which make it a reliable storage solution, offering cost efficiency and saving up to 80 per cent on nitrogen usage.

In 2023, Malaysia's electrical and electronics (E&E) trade surged to an impressive RM931.39 billion.

A substantial part of this trade, totalling RM575.45 billion, stemmed from exports, underscoring the crucial role of the E&E industry in Malaysia's economy.

Semiconductor devices, ICs, transistors, and valves exports collectively made up 67 per cent of Malaysia's total E&E exports in 2023, amounting to RM387.45 billion.

Major export markets include Singapore, the US, China, Hong Kong, and Taiwan. — Bernama