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National Semiconductor Strategy (NSS)
As the Secretariat of Malaysia’s National Semiconductor Strategy (NSS), CREST is proud to champion the nation’s aspirations to become a global force in the semiconductor industry. Strategically located in Southeast Asia, Malaysia plays a critical role in the global semiconductor supply chain—a position built on decades of innovation, investment, and talent development.
In 2023, Malaysia reaffirmed its status as a semiconductor powerhouse. Penang, the country’s technology hub, attracted an impressive USD12.8 billion (RM61 billion) in Foreign Direct Investment (FDI)—surpassing the cumulative total of the previous seven years. Among the landmark investments was Intel’s USD7 billion (RM30 billion) next-generation manufacturing facility. These achievements reflect Malaysia’s increasing importance in enabling technologies such as electric vehicles, artificial intelligence, medical devices, and advanced electronics.
Looking to explore the National Semiconductor Strategy (NSS) in more detail?
Download the NSS Handbook.
Strategic Position and Achievements
Malaysia ranks as the world’s 6th largest exporter of semiconductors and 10th for electrical and electronics (E&E) products. While the nation has traditionally excelled in back-end activities, particularly Outsourced Semiconductor Assembly and Testing (OSAT), its capabilities and ambitions are rapidly expanding.
The local ecosystem now includes growing strengths in semiconductor design, fabrication, and equipment manufacturing. Strategic investments and collaborative initiatives are positioning Malaysia to move up the value chain—into advanced packaging, high-end manufacturing, design innovation, and next-generation semiconductor equipment.
In 2023, the semiconductor industry attracted RM69.4 billion in approved investments, generating over 11,000 new jobs across managerial, engineering, and technical functions. Key projects included Malaysian design firm Infinecs Sdn. Bhd. and X-Fab Sdn. Bhd., a Belgium-based specialist in analogue/mixed-signal and MEMS foundry services. These milestones highlight Malaysia’s ability to attract world-class companies and nurture a globally competitive workforce.
6
Malaysia's world rank in semiconductor exports
10
Malaysia's world rank in E&E exports
69.4
billion approved investments in the semiconductor industry
11000
new jobs created in the semiconductor industry
Background of the National Semiconductor Strategy
The NSS was established in response to Malaysia’s rising influence in the global semiconductor landscape and the need for a structured, forward-looking strategy to sustain its momentum. On 16 April 2023, during a National Investment Committee meeting, the Prime Minister called for a dedicated national strategy to strengthen Malaysia’s position in this critical sector.
Within six weeks, the NSS was launched – reflecting a national commitment to bold and swift action. Spearheaded by the Ministry of Investment, Trade and Industry (MITI), CREST as its secretariat and in collaboration with MITI agencies and relevant ministries, the NSS is designed to be agile, inclusive, and outcomes-driven. Structured in three progressive phases, the NSS aims to foster deep partnerships with industry leaders across ASEAN, Asia, and the world, reinforcing Malaysia’s leadership in the global semiconductor ecosystem.
Decoding the NSS: Vision for the Future
The NSS envisions Malaysia as a global leader in semiconductors, powered by innovative local enterprises, a highly skilled talent base, and strong collaboration with international industry players. The vision is anchored in the NSS motto:
“Malaysia: Bridging Technology for Our Shared Tomorrow.”
Key pillars of this vision:
Innovation and Creativity
Cultivating a competitive ecosystem that encourages breakthrough technologies.
Collaboration and Connectivity
Serving as a strategic “bridge” for countries and companies seeking technology-neutral, innovation-driven partnerships.
Sustainability and Resilience
Strengthening the global semiconductor supply chain while championing inclusive, humanity-driven innovation.
With its rich blend of local expertise and international talent, Malaysia is emerging as a vibrant hub for semiconductor advancement. The nation’s strong infrastructure, supportive policies, and future-ready workforce make it an ideal launchpad for global semiconductor ambitions.
Why Malaysia?
Strategic Advantages
- The 6th largest exporter of semiconductors globally.
- Proven FDI destination with a legacy of global partnerships.
- Strong policy support and national commitment to the semiconductor industry.
- Possesses 50 years of semiconductor experience and an existing ecosystem.
Talent and Innovation
- Skilled and diverse talent pool enriched by global exposure.
- National focus on talent development through initiatives such as the Engineering Talent for Semiconductor Industry (ETSI) under NSS.
A Collaborative and Neutral Platform
- Positioned as a neutral ground for global technology cooperation.
- Committed to building a resilient, secure, and sustainable semiconductor supply chain.
