Malaysia to develop 12 SMEs in advanced packaging field, attract RM8.5b investments by 2030 — economy minister - The Edge Malaysia

Malaysia plans to nurture 12 local small and medium enterprises (SMEs) in the advanced packaging sector and attract RM8.5 billion in investment by 2030, through the Advanced Packaging Institute and Re... Read original →

Malaysia’s push into advanced packaging is a strategic play amid the global semiconductor supply chain’s regional fragmentation. Technically, if the 12 targeted SMEs master Chiplet, Fan-Out, or 3D TSV processes, they’ll catalyze local demand for IC design tools and test equipment—precisely as TSMC’s CoWoS capacity constraints create outsourcing opportunities. However, compliance risks loom: Western clients may impose 'China-exclusion' audits, inflating certification costs for smaller firms. Competitors won’t sit idle—Singapore could fast-track cleanroom expansions, while Vietnam might undercut with cheaper back-end facilities. Within 18 months, the NCER’s success hinges on building robust IP frameworks and engineering talent; otherwise, the APIRC risks becoming a low-value assembly hub. If executed well, it could emerge as Southeast Asia’s first heterogeneous integration node outside Taiwan, China.