Malaysia is firmly positioning itself as a hub for semiconductor investment, with Prime Minister Anwar Ibrahim stating the country aims to attract over $100 billion in investment into the industry. This aligns with recent trends in the region, such as China's announcement of a massive $47.5 billion investment fund or Micron's plans to build a new chip factory in Hiroshima, Japan by the end of 2027.

As a major player accounting for 13% of global chip testing and packaging, Malaysia has benefited from strong investments by Intel ($7 billion for an advanced packaging plant) and Infineon ($5.4 billion to expand its power chip plant). The country now hopes around 10 local companies will make substantial investments in new facilities focused on chip design and advanced packaging. To support this goal, the Malaysian government plans to allocate $5.3 billion in fiscal backing, along with tax breaks and subsidies. It is targeting these investments to generate revenues between $210 million and $1 billion for the semiconductor industry in Malaysia.