Malaysia Launches National Consortium to Accelerate Advanced Semiconductor Packaging Development Within Two Years

SME.asia Malaysia

Overview

Malaysia has established the Malaysia Advanced Packaging Consortium (MAPC) with a total funding of RM185 million ($39 million USD) to develop domestic advanced semiconductor packaging capabilities within two years. This initiative, a collaboration between government (RM92M R&D grant) and industry (RM93M), involves five local companies. The primary goal is to elevate Malaysia’s semiconductor industry from traditional OSAT services to higher-value advanced packaging, thereby strengthening its ecosystem and national intellectual property.

In Depth

National Strategy for Advanced Packaging Advancement

Malaysia has long played a significant role in the semiconductor industry’s back-end processes, particularly in Outsourced Semiconductor Assembly and Test (OSAT). However, as global semiconductor demand shifts towards high-value sectors such as AI, 5G/6G, and high-performance computing, there is an urgent need to adapt to more sophisticated packaging technologies. To address this challenge and enhance national competitiveness, the Malaysian government has announced the establishment of the Malaysia Advanced Packaging Consortium (MAPC). This initiative is part of a national strategy aimed at rapidly developing domestic advanced packaging capabilities within a short two-year timeframe and transforming the industrial structure.

Public-Private Partnership and Funding

The MAPC adopts a model of close collaboration between the government and industry. The government has committed an R&D grant of RM92 million (approximately $19.5 million USD), which is augmented by an industry contribution of RM93 million (approximately $19.7 million USD), securing a total fund of RM185 million (approximately $39 million USD). This funding will be allocated to advanced packaging research and development, talent cultivation, and capital expenditure for equipment. The consortium includes five local companies: SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd, and NSW Automation Sdn Bhd, each expected to contribute through their specialized expertise, thereby elevating Malaysia’s overall technological capabilities.

Expected Outcomes and Future Outlook

The establishment and activities of MAPC are designed to transform Malaysia’s semiconductor industry from a provider of conventional OSAT services into a developer and provider of more complex and high-value advanced packaging solutions. This transition is expected to increase added value within the domestic value chain and foster the creation of new technological intellectual property (IP). In the long term, this initiative represents a crucial step for Malaysia to solidify its position as a more strategic and indispensable player in the global semiconductor supply chain. Furthermore, it is anticipated to contribute to job creation in advanced technology sectors and upskill the domestic workforce, supporting sustainable economic growth.