Malaysia is planning an ambitious $107 billion investment to revitalize its semiconductor sector

Malaysia aims to attract at least 500 billion ringgit ($107 billion) in investment for its semiconductor sector, Prime Minister Anwar Ibrahim he apparently said.

The planned investments concern the design of integrated circuits, advanced packaging and equipment for the production of semiconductor chips, Reuters reports.

Malaysia plays an important role in the semiconductor market, contributing 13% to global testing and packaging. Large companies, including Intel Corporation (NASDAQ:INTC) i Infineon AG Technologies (OTC:IFNNY) have made significant investments in the country in recent years.

Prime Minister Anwar also highlighted the goal of establishing at least ten local companies specializing in chip design and packaging, with projected revenues ranging from $210 million to $1 billion.

To achieve these goals, the Malaysian government will provide USD 5.3 billion in fiscal support, with further details to be announced in the future.

Anwar highlighted Malaysia’s ability to advance the value chain by enhancing high-end semiconductor manufacturing and design.

Read also: The U.S. Department of Commerce awards $75 million to graduates to build a semiconductor plant in Georgia

On April 22, Anwar announced Malaysia’s plan to build the largest integrated circuit design park in Southeast Asia. The government will offer incentives such as tax breaks, subsidies and visa waiver fees to attract global technology companies and investors.

The initiative aims to move beyond back-end chip assembly and testing to high-value front-end design work.

Malaysia is poised to benefit from Chinese chipmakers looking to diversify outside China to meet their assembly needs.

For example, last September in China Xfusion established cooperation with Malaysia Gate of the Nation for the production of GPU servers, crucial for data centers and AI applications.

Additionally based in Shanghai Star Five establishes a design center in Penang, while TongFu Microelectronics Company in cooperation with the company, it is expanding its Malaysian plant Advanced Micro Devices Inc (NASDAQ:AMD).

German company Infineon announced a €5 billion investment to expand its power chip factory in Malaysia last August.

Similarly, Intel (NASDAQ:INTC) has revealed plans to build a $7 billion advanced chip packaging plant in Malaysia in 2021, strengthening the country’s position in the semiconductor industry.

Reservation: : This content was created in part using AI tools and reviewed and published by Benzinga editors.

Read on: Biden Administration Unveils $285 Million in Funding for Semiconductor Institute

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This article Malaysia Intends Ambitious $107 Billion Investment To Revive Semiconductor Sector Originally appeared on Benzinga.com