Zahid: Malaysia eyes 15pc market share in semiconductor, electronics sector by 2030

GEORGE TOWN, May 23 — Malaysia hopes to be able to reach a market share of 15 per cent in the global semiconductor and electronics sector by 2030, said Datuk Seri Ahmad Zahid Hamid.

The deputy prime minister said the country is currently a major player in the semiconductor assembly, test and packaging activities, with a market share of 13 per cent.

He said Malaysia ranks as the seventh largest exporter of semiconductors in the world.

“We have held discussions with the Penang chief minister so that the Silicon Valley of Penang can be expanded to Seberang Perai,” he said.

He said Penang can cooperate with Malaysia Investment Development Authority (Mida) and Ministry of Investment, Trade and Industry (Miti) to expand the facilities for the semiconductor industry.

He said the semiconductor industry is a large market as it is expected to reach a value of US$1 trillion (RM4.55 trillion) by 2030.

When asked on whether southern Kedah will also be expanded to support the semiconductor sector in Penang, he said this could be sped up if the state government is in line with the federal government.

Zahid also said Malaysia should look at complementing the expanding semiconductor sectors in Southeast Asia instead of competing against other Southeast Asian countries.

“We are providing not only the semiconductor infrastructure but also training for the workforce,” he said.

He said tax rebates and incentives are given and a special council is already established.

"We are working closely with Mida and the human resource ministry and other ministries to collaborate and learn to execute the national objective to get more foreign direct investments especially from multinational companies to invest in semiconductor sector here,” he said.

He said the country also needed to focus on science, technology, engineering and mathematics (STEM) education.

He said the education system and syllabus has to be upgraded.

He said Malaysia need to produce its own skilled workforce instead of relying on foreign workers.

Earlier in his speech at the Semicon South East Asia 2023, he said there is now political stability under the current unity government.

“I want Penang to be retained under unity government for this stability to continue,” he said.

He said it is only with continued political stability that the government will be able to implement and roll out its plans for the country and betterment of its people.