Much has been mentioned about Malaysia in recent days, including in the FT and the NY Times. Malaysia has been a rather quiet player in the semiconductor space for more than 50 years, with companies like Intel and AMD setting up shop right here in Penang.
While the companies operating in Malaysia have historically predominantly been at the backend side of semiconductor manufacturing – focusing more on packaging, assembling and testing of chips, this has now changed.
The competitive nature of the industry has led to a very mature ecosystem of companies growing. Initially these companies were supporting the semiconductor industry but with now this has changed and started servicing the EMS contract manufacturing companies too. Companies that have expertise in automated optical inspection (“AOI”) or machine building for example have mushroomed and now are too, exporting their services to countries like the US.
Malaysia has always been a stable country, politically speaking, despite the changes in premiership in the last few years. Policies have been consistent, and as a country that was built on the foundation of trade, Malaysia is very open to foreign trade and foreign direct investments (“FDI”).
Contract manufacturing companies have matured over the years. There are ample of companies that focuses on mechanical and electrical component manufacturing. Big EMS contract manufacturing companies like Flex have multiple plants in Malaysia in various location but local companies too. However selection of the right partner is important.
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