Malaysia is emerging as a new semiconductor powerhouse

Malaysia's semiconductor industry is experiencing a boom, centered in the northern state of Penang. Major European and US companies are establishing new facilities or expanding existing ones, aiming to build resilient global supply chains for these essential components.

Semiconductors (microchips) are essential for modern tech, with over 100 billion used daily. But the supply chain is risky because one Taiwanese company, TSMC, makes most advanced chips. Experts worry this concentration could be disrupted by political issues or natural disasters.

Seeking diversification, companies are turning to Malaysia. Penang attracted a record-breaking $12.8 billion in foreign direct investment in 2023, surpassing the total amount from the previous seven years combined.

Leading companies like Intel are investing heavily, with a $7 billion commitment to a new Penang plant. The Malaysian government considers this industry development a "critical goal."