Report: Malaysia faces shortage of 60,000 engineers to fuel chip industry growth

KUALA LUMPUR, Sept 14 — Malaysia is seeking to fill a critical gap of 60,000 engineers to meet its ambitions in the semiconductor industry, a sector poised to drive the country’s economic growth in the coming years.

Singapore daily The Straits Times (ST) reported that among those returning to contribute to this effort is Salleh Ahmad, a Terengganu-born microelectronics expert, who had initially struggled to find work in Malaysia after graduating from France’s top engineering school, ESIEE Paris, in 2009.

Now, Salleh is back as the Chief Technology Officer of Weeroc, a microchip manufacturer, tasked with setting up its office at the Integrated Circuit (IC) Design Park in Puchong, Selangor.

“Malaysia is a good choice due to its bright industry prospects, government incentives, and the low cost of doing business,” Salleh was quoted saying.

The Puchong facility is part of Malaysia’s strategy to move up the semiconductor value chain. Currently, the country hosts major industry players like Intel and Infineon, with Penang dubbed the “Silicon Valley of the East.”

Malaysia's goal is to increase its share of global semiconductor exports from 7 per cent to 15 per cent by 2030, doubling its output to RM1.2 trillion.

Malaysia Semiconductor Industry Association chairman Datuk Seri Wong Siew Hai told ST that there is an urgent need for more engineers.

“We already have 90,000 engineers in the chip sector, but another 60,000 are needed to meet our targets,” he reportedly said.

The government’s strategy to address this shortfall hinges on the “three Rs”: recruit, retain, and return. This involves hiring new talent, keeping skilled professionals in the country, and encouraging Malaysian engineers working abroad to return home.

Selangor Investment executive councillor Ng Sze Han said the Puchong IC hub, which was officially opened last month, aims to employ 400 local engineers.

“So far, 60 have already been hired by anchor tenants,” he said.

One such anchor tenant is MaiStorage, a subsidiary of Taiwan’s Phison Electronics, which has set up operations in Puchong.

“We have seen five Malaysians return from Taiwan’s Hsinchu Technology Park to lead and mentor local engineers,” Ng was quoted saying.

Penang is also playing a key role in attracting talent. Penang Chief Minister Chow Kon Yeow expressed confidence in the state’s ability to grow its semiconductor workforce.

“There are more than 30 IC design companies in Malaysia, with 28 based in Penang,” he told ST.

Chow added that Penang is launching a new initiative called “Penang Silicon Design @5km+” to attract, hire, and upskill engineers for the growing semiconductor sector.

Industry players like Germany’s Infineon Technologies, which has over 500 employees in Penang, are also working to retain talent.

Raj Kumar, Infineon’s senior vice-president for technology and research and development, said the company has one of the lowest attrition rates in the industry.