Challenges and opportunities for IC design and fabrication in Malaysia

Summary form only given. The Electrical and Electronics Industry in Malaysia has consistently been the highest contributor to the annual Malaysian exports despite the cyclical and volatile nature of the industry. For 2011, as in the previous years, it has even outperformed the Oil & Gas, Palm Oil and Chemicals & Chemical Products sectors of the economy, even if they are all combined. It is however realised that the true measure of economic significance is the local value-adding of the Malaysian activity. For although the exports are high, the trade statistics also show that imports are also high. The gross numbers show that local valueadding is in the 15-25 % range; which present a significant scope (and challenge) for the local players to rise up to. This paper describes the efforts that are currently underway to increase the local value-adding and challenges it faces to make it a sustainable industry transformation exercise.