Malaysia emerges as a hotspot for chip firms amid U.S.-China tech war

Kuala Lumpur, Malaysia is a fast-growing metropolitan region in South-East Asia, known for tourism and shopping. The city has good public transportation for getting around. Malaysia has become a hotspot for semiconductor factories due to tensions between the U.S. and China, prompting companies to diversify operations. Intel has invested $7 billion in building a chip factory in Malaysia, with production starting in 2024. GlobalFoundries and Infineon are also expanding their operations in Malaysia. Malaysia’s skilled labor and lower operating costs make it attractive for foreign players. The country aims to focus on the “front end” of chip manufacturing. To address brain drain, Malaysia is looking to attract skilled Malaysians back to the country. Other countries like India and Japan are also aiming to become major chip hubs alongside the U.S., Taiwan, and South Korea. Washington has introduced rules restricting China’s access to advanced chip technology, benefiting Malaysia and Asia in general.

Malaysia is becoming a hotspot for semiconductor factories due to US-China tensions, with major companies like Intel, GlobalFoundries, and Infineon investing in the country. The country’s well-established infrastructure and skilled labor in semiconductor manufacturing make it an attractive location for foreign players. Malaysia aims to focus on the “front end” of chip manufacturing processes to further grow its semiconductor ecosystem. However, the country faces challenges with brain drain as skilled workers leave for better opportunities abroad. The government is working to attract skilled Malaysians back to contribute to the country’s semiconductor industry. Other countries like India and Japan are also courting foreign firms to establish chip hubs in their countries amidst the US-China tech war. This shift in semiconductor manufacturing could benefit Malaysia and Asia as a whole as access to advanced semiconductor technology becomes a tool for global technological supremacy.

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