Selangor Launches Malaysia Semiconductor IC Design Park to Boost National Industry

Selangor has inaugurated a 0.6-hectare Semiconductor Integrated Circuit (IC) Design Park, marking a significant step in Malaysia's ambition to elevate its semiconductor industry and promote "Made by Malaysia" products. The launch, announced by Selangor Information Technology & Digital Economy Corporation (Sidec) CEO Yong Kai Ping, follows the initial announcement made at the KL20 Summit in April, underscoring the swift and dedicated efforts of all stakeholders involved.

"We are proud to officially launch the Malaysia Semiconductor IC Design Park, just three months after its initial announcement. This rapid progress highlights the unwavering commitment of all stakeholders," said Yong.

The park, developed in collaboration with the federal government, international semiconductor firms, and venture capitalists, aims to position Malaysia as a formidable player in the global IC design industry. This strategic initiative leverages Malaysia's technological capabilities and resources, fostering innovation and advancing the nation's reputation in high-tech manufacturing and design.

Located in Puchong, near Kuala Lumpur, the site was selected after a thorough evaluation of several locations in Klang Valley. Key factors considered included size, power capacity, building status, office fittings, potential for future expansion, and public transport accessibility.

The park is set to house over 400 IC design engineers from five local, international, and joint-venture IC design companies. Anchor tenants include Maistorage, Skyechip, Weeroc, AppAsia ChipsBank, and SensoremTek Sdn Bhd, supported by ecosystem partners such as BlueChip VC, ARM Holdings, Cadence Design System, Synopsys, Siemens EDA, Keysight, and the Shenzhen Semiconductor Association.

Economy Minister Rafizi Ramli, who attended the launch, emphasized the need for Malaysia to develop its own semiconductor design capabilities rather than relying on imported chips. He outlined the federal government's strategic direction to enhance the entire semiconductor ecosystem, focusing on both upstream and downstream sectors, with a particular emphasis on original design manufacturers (ODM).

"The country is currently receiving significant investment into data centres, but data centres also require ODM. Therefore, the government is looking at the entire ecosystem to complete it," Rafizi stated. "As this ecosystem develops, data centers in Malaysia will begin to consider 'Made by Malaysia' chips."

Selangor Menteri Besar Datuk Seri Amirudin Shari reiterated Selangor's ambition to become a leading player in the semiconductor space. "Selangor does not aim to be a bit-part player but intends to see semiconductors of the future labeled 'Made in Malaysia, Designed in Selangor.' This is crucial if we want to make Selangor Malaysia's first 500 billion ringgit economy in the coming three years."

Amirudin highlighted that the primary goal of the park is to promote original design manufacturing, encouraging local involvement in product design, prototyping, and production. "This project is not just about infrastructure; it is about creating opportunities and driving growth," he added.

The Malaysia Semiconductor IC Design Park partners with industry leaders like Cadence Design Systems and ARM Holdings. Malaysia, already a key regional hub with chip packaging facilities for Intel, GlobalFoundries, and Infineon Technologies AG, has also attracted Chinese chip firms seeking easier access to foreign capital and technologies.

Earlier this year, Malaysia pledged at least 25 billion ringgit ($5.6 billion) to support its semiconductor industry, aiming to double its exports to 1.2 trillion ringgit by 2030 and solidify its position as the sixth-largest chip exporter in the world.