Advanced packaging could be the next big catalyst for Malaysia’s tech sector - Focus Malaysia

Malaysia's technology sector is poised for significant growth as advanced packaging technology emerges as a key catalyst for its semiconductor industry. As global semiconductor demand continues to ris... Read original →

Malaysia’s strategic bet on advanced packaging is a calculated move within the global semiconductor realignment. Technologically, it forces local OSATs to leap from legacy QFN to 2.5D/3D and chiplet integration, spurring demand for substrates, photoresists, and inspection tools—creating a localized tech feedback loop. While U.S. export controls don’t directly target packaging gear, tightening material flows from the U.S., Japan, or the Netherlands could expose hidden supply vulnerabilities, demanding accelerated local qualification. Facing Taiwan, China and Korea’s dominance in high-end packaging (70% market share), Malaysia must leverage cost and policy incentives to capture mid-tier HBM and AI-chip packaging niches. Over the next 12–24 months, its true long-tail impact lies not in capacity scale but in whether it can attract fabless design houses to establish regional R&D centers—transforming from a manufacturing outpost into a tech nexus.