Special Session: Semiconductor - Back to the Future: A Once in A Generation Opportunity

The democratization of semiconductor technology is essential in fostering global progress and preventing economic disparity.

Three key chip architectures drive today’s semiconductor technology: ARM, the leader in mobile efficiency; x86, the backbone of desktop computing; and RISC-V, the game-changing open-source architecture.

Semiconductor democracy is important, and semiconductors must remain accessible to all nations. Unlike nuclear technology, which became monopolized, access to semiconductors must remain open to ensure global innovation and mitigate growing economic inequality.

Global collaboration is crucial to advancing semiconductor technology and spurring innovation. Global cooperation and shared education will empower the next generation to use their diverse global perspectives to innovate new breakthroughs in areas previously overlooked.

The US-China tech war has intensified the deglobalization of the semiconductor industry, benefiting neutral countries like Malaysia.

Malaysia’s well-established semiconductor ecosystem has attracted companies looking to shift operations due to geopolitical tensions. As US-China tensions rise, many firms are relocating from China, and multinationals with a presence in Malaysia are increasing their investments.

There is a global talent shortage in the semiconductor industry. Semiconductor companies are diversifying away from the US due to domestic talent shortages, stricter immigration policies, and declining number of electronics engineering graduates. Neutral countries like Saudi Arabia and Malaysia are increasingly attractive destinations.

US and Chinese MNCs are moving to neutral countries to serve a broader customer base. Chinese firms often struggle to access international capital, as they predominantly cater to domestic markets. By positioning in neutral countries, MNCs can gain access to a global customer base.

Malaysia needs a holistic National Semiconductor Strategy to maintain its strategic edge and avoid falling behind.

Maintaining neutrality is essential for Malaysia’s strategic advantage. Malaysia’s existing semiconductor ecosystem is large enough to cater to both US and Chinese demands of neutrality. However, this advantage could be at risk if Malaysia chooses to align with either side.

Developing semiconductor capabilities is key to preserving Malaysia’s sovereignty. Building local champions and advancing homegrown technology will reduce dependence on foreign suppliers, who might otherwise influence Malaysia’s future policies.

Attracting and retaining global talent is critical for the continued growth of Malaysia’s semiconductor industry. Malaysia must streamline immigration processes to attract foreign talent, create policies to nurture and retain local electronic engineering graduates, and strike a balance between supporting multinational corporations and incentivizing local startups.