Govt targets commercialisation of advanced packaging technology after two-year capacity building, says minister - The Edge Malaysia

Malaysia's Science, Technology and Innovation Minister Datuk Chang Lih Kang announced on July 9 that the government aims to commercialize advanced packaging technology developed through research and d... Read original →

Malaysia’s push to commercialize advanced packaging marks a strategic pivot from OSAT labor to high-value IP creation. Technically, this catalyzes local capabilities in sub-3nm enablement—particularly 2.5D/3D stacking and silicon photonics critical for AI and quantum chips. The RM185 million grant, though modest, enforces a hard TRL 5-to-9 mandate, compelling firms to adopt SEMI-compliant mass production protocols and raising compliance costs. Facing entrenched players like ASE, Amkor, and OSATs from Taiwan, China, Malaysia is targeting niche applications—5G mmWave modules and data center chiplets—to avoid head-on competition. Within 18 months, if MSE delivers its first locally owned advanced package IP, it could lure global IDMs to establish regional advanced packaging hubs in Malaysia, redrawing Southeast Asia’s semiconductor map.