The Economy of Malaysia
Electronics and the Penang Story
Penang became a chip assembly and testing hub, and Malaysia is a major player in global semiconductor packaging.
Malaysia is a key node in chip supply chains.
Early start
Multinationals built plants in Penang in the 1970s, using free trade zones.
Role
Malaysia is strong in back-end steps such as assembly, packaging and testing.
Upgrading
The government wants to move into design and advanced manufacturing.
Risks
Competition from Vietnam and others, and reliance on foreign firms, are challenges.
A chip journey
A silicon wafer made elsewhere is cut, packaged and tested in Penang before going to a phone maker.
Thinking chips means only chip design
Assembly and testing are big parts.
Key takeaways
- Penang is an electronics hub.
- Malaysia excels in back-end chip work.
- The aim is to move up the chain.
- Competition is rising.
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