Malaysia holds about 13% of global chip assembly, test and packaging, a figure the central bank and the investment agency both give without a year (Bank Negara Malaysia, 2024 review) (MIDA, 1 Jul 2026). Electrical and electronics exports were RM711.61 billion in 2025, 44.3% of all exports (The Star, 11 May 2026), and RM563.65 billion in January to July 2026 (The Star, 8 Sep 2026).
Plants are concentrated in Penang and in Kulim, Kedah, with others in Selangor, Kuala Lumpur, Melaka, Negeri Sembilan, Perak, Johor and Sarawak. Most of the work is back-end: the national strategy says the industry “remains over-concentrated in the back-end process” (MITI, 2024).
- 13%
- Share of global assembly, test and packaging, year not stated (Bank Negara Malaysia, 2024 review)
- RM711.61bn
- E&E exports in 2025 (The Star, 11 May 2026)
- 7.3%
- Share of global semiconductor exports, 2024 (Bank Negara Malaysia, 2024 review)
- 614,051 jobs
- Whole E&E industry, not chips alone (Bank Negara Malaysia, 2024 review)
How big is Malaysia’s semiconductor industry?
| Measure | Figure | What it counts | Source |
|---|---|---|---|
| E&E exports, 2024 | RM601.21bn | All electrical and electronics | (Malay Mail, 4 Sep 2026) |
| E&E exports, 2025 | RM711.61bn, 44.3% of exports | All electrical and electronics | (The Star, 11 May 2026) |
| E&E exports, first half 2026 | RM467.95bn, up 42.5% | 48.2% of exports; semiconductors 73.7% of E&E | (MalaysiaSME, 28 Jul 2026) |
| E&E exports, January to July 2026 | RM563.65bn | 48.4% of exports; latest cumulative figure found | (The Star, 8 Sep 2026) |
| Semiconductor exports, 2024 | RM387.98bn | Devices, integrated circuits and transistors; 64.5% of E&E | (Malay Mail, 4 Sep 2026) |
| Integrated circuit exports, 2025 | RM389.15bn, up 24.3% | Electronic integrated circuits only, a narrower series | (The Star, 11 May 2026) |
| Semiconductor exports, January to April 2026 | RM212.12bn | Against RM141.23bn a year earlier | (Malay Mail, 4 Sep 2026) |
The 2024 and 2025 semiconductor rows use different product definitions and are not one series. An industry association expects E&E exports to pass RM800bn in 2026; that is a forecast (The Star, 10 Jun 2026).
- Rank: described as the world’s sixth-largest semiconductor exporter (Free Malaysia Today, 31 Jul 2025), and the ninth-largest E&E exporter, a different measure (Bank Negara Malaysia, 2024 review).
- Jobs: 614,051 in the whole E&E industry at an average monthly wage of RM4,019. No chips-only figure is published (Bank Negara Malaysia, 2024 review).
- Approvals: RM69.4bn of semiconductor investment approved in 2023 (MITI, 2024); RM16.9bn for electronic components across 59 projects in 2025, and RM16.6bn for E&E in the first half of 2026 (Malay Mail, 4 Sep 2026). Approvals are not money spent.
Which multinational chip companies have plants in Malaysia?
| Company | What it does in Malaysia | Where | Announced investment | Source |
|---|---|---|---|---|
| Intel | Assembly and test since 1972; die sort and preparation at Kulim; advanced packaging complex being built in Penang | Penang; Kulim, Kedah | More than US$7bn over ten years (2021); a further RM860m announced 1 Dec 2025 | (TrendForce, 2 Dec 2025) |
| Infineon (Kulim) | Front-end wafer fab; 200 mm silicon carbide power fab opened 8 Aug 2024 | Kulim Hi-Tech Park, Kedah | EUR 2bn first phase; up to EUR 5bn second phase over five years | (Semiconductor Today, 8 Aug 2024) |
| Infineon (Melaka) | Back-end assembly and test; operating since 1973 | Batu Berendam, Melaka | None found for 2024 to 2026 | (MIDA, undated) |
| Micron | Assembly and test of memory and solid-state drives; second plant launched 13 Oct 2023 | Perai and Batu Kawan, Penang | US$1bn invested and another US$1bn planned (Oct 2023) | (Bernama, 13 Oct 2023) |
| AMD | Design, research and engineering labs; new office for over 1,200 employees opened 14 Aug 2025 | Bayan Lepas, Penang | Not disclosed | (The Star, 14 Aug 2025) |
| TF-AMD | Assembly, test and packaging | Bayan Lepas and Batu Kawan, Penang | Nearly RM2bn for a second site (June 2022) | (MIDA, 14 Jun 2022) |
| Texas Instruments | Assembly and test; new Melaka factory opened | Kuala Lumpur; Melaka | Up to RM14.6bn announced June 2023 (RM9.6bn Kuala Lumpur, RM5bn Melaka) | (Evertiq, 14 Nov 2025) |
| Bosch | Final testing of automotive chips and sensors; opened 1 Aug 2023 | Batu Kawan, Penang | About EUR 350m to the mid-2030s | (InvestPenang, 1 Aug 2023) |
| onsemi | 6-inch wafer fab, probe, assembly and test | Seremban, Negeri Sembilan | None found | (onsemi, read 11 Nov 2026) |
| NXP | Assembly and test; new factory under construction, ramp expected Q1 2028 | Petaling Jaya, Selangor | Not disclosed | (The Star, 13 Aug 2026) |
| Renesas | Back-end manufacturing of automotive power and analogue devices | Penang; Teluk Panglima Garang, Selangor | A further RM480m in Penang (July 2026) | (TNB newsclip, 29 Jul 2026) |
| STMicroelectronics | High-volume assembly and test; over 4,700 employees | Muar, Johor | None found for 2024 to 2026 | (BISinfotech, 8 Nov 2024) |
| ASE | Chip packaging and testing; fifth Penang plant opened 18 Feb 2025 | Bayan Lepas, Penang | RM4.5bn for plants four and five, or US$300m in another report | (Bernama, 18 Feb 2025) |
| Nexperia | High-volume assembly and test | Seremban, Negeri Sembilan | A further RM1.6bn “by 2026” (reported 2021) | (MIDA, 5 Feb 2026) |
| X-Fab | Front-end wafer foundry; capacity raised to 40,000 wafer starts a month | Kuching, Sarawak | RM3bn per MIDA; “$600 million” per the company | (MIDA, 12 Sep 2025) |
| AT&S | IC substrate manufacturing; volume production from May 2025 | Kulim Hi-Tech Park, Kedah | About RM5bn to date; expansion of EUR 1.5bn to 2.0bn reported July 2026 | (Evertiq, 2 Jul 2026) |
| Lam Research | Wafer fabrication equipment manufacturing; plant opened 3 Aug 2021 | Batu Kawan, Penang | RM1bn | (InvestPenang, 4 Aug 2021) |
| Ferrotec | Materials and components for chip equipment; second plant opened 28 Oct 2026 | Kulim, Kedah | About RM1.9bn cumulative | (MIDA, 5 Nov 2026) |
| MKS | Subsystems for wafer fabrication equipment; first phase opened June 2026 | Penang | Over RM400m | (MIDA, 20 Jun 2026) |
| AIXTRON | Deposition equipment manufacturing; new site agreed May 2026 | Bandar Cassia, Penang | Not disclosed | (MIDA, 5 May 2026) |
| Chipbond | Wafer bumping, wafer-level packaging and test; opened 9 Feb 2026 | Batu Kawan, Penang | Close to US$200m | (MIDA, 9 Feb 2026) |
| StarFive | RISC-V chip design centre | Penang | RM250m over five years, announced February 2022 | (Malay Mail, 19 Feb 2022) |
Which Malaysian semiconductor companies are there?
| Company | What it does in Malaysia | Where | Announced investment | Source |
|---|---|---|---|---|
| SilTerra | 8-inch wafer foundry; silicon photonics capacity being doubled by end-2026 | Malaysia | About RM100m of further capital spending in the second half of 2026 | (The Star, 25 Aug 2026) |
| Inari Amertron | Outsourced assembly and test: radio-frequency, photonics and sensors; building advanced packaging and AI data-centre power modules | Penang | No 2025 to 2026 amount found | (The Star, 26 Oct 2026) |
| Unisem | Packaging and test; wafer bumping | Ipoh and Gopeng, Perak | Gopeng second phase of about RM396m, announced 9 Oct 2026 | (The Star, 9 Oct 2026) |
| Malaysian Pacific Industries | Outsourced packaging and test; power modules, including for AI data-centre servers | Ipoh, Perak | US$65m of power-module capacity completed (August 2026) | (Bernama, 24 Aug 2026) |
| Globetronics | Outsourced chip assembly and test | Penang | Three-year agreement worth at least RM145m (November 2024) | (MIDA, 21 Nov 2024) |
| ViTrox | Automated inspection equipment for chip and electronics manufacturing | Batu Kawan, Penang | Over RM100m research allocation for 2026 | (The Edge, Sep 2026) |
| Greatech | Factory automation equipment | Bayan Lepas and Batu Kawan, Penang | About RM1.3bn for a fourth Batu Kawan plant (February 2023) | (MIDA, 28 Feb 2023) |
| Pentamaster | Automated test equipment and advanced-packaging machines | Penang | About RM300m on a third campus over two years | (The Edge, Jul 2026) |
| UWC | Precision components; moving into wafer-fab equipment manufacturing | Batu Kawan, Penang; Taiping, Perak | RM200m for a new Batu Kawan factory (proposed, October 2026) | (The Star, 8 Oct 2026) |
| Frontken | Precision cleaning and coating of chip equipment parts | Kulim, Kedah; Kuching, Sarawak; Melaka | Not disclosed | (The Star, 31 Oct 2025) |
| NationGate | Electronics manufacturing services; assembles AI servers | Penang | Not disclosed | (MIDA, 9 Dec 2024) |
| Oppstar | Chip design services; holds an Arm compute subsystem licence | Penang | None announced | (The Star, 5 Oct 2026) |
| SkyeChip | Chip design and silicon IP; designer of the MARS1000 edge AI processor | Penang; Puchong, Selangor | Raised RM352m at its listing on 20 May 2026 | (The Star, 21 May 2026) |
Download both tables as CSV, free to reuse with credit (CC BY 4.0). Investment figures are as announced, at different dates, and are not additive.
Where is the industry located?
- Penang: Bayan Lepas and Batu Kawan, the largest cluster, with assembly and test, equipment makers and most chip design firms.
- Kedah: Kulim Hi-Tech Park, with front-end fabs (Infineon), Intel, substrates (AT&S) and equipment materials (Ferrotec).
- Elsewhere: Selangor and Kuala Lumpur (NXP, Renesas, Texas Instruments, design parks), Melaka (Infineon, Texas Instruments), Negeri Sembilan (onsemi, Nexperia), Perak (Unisem, Malaysian Pacific Industries), Johor (STMicroelectronics) and Sarawak (X-Fab).
The strategy document names Kulim, Batu Kawan and Bayan Lepas as the main parks (MITI, 2024); the investment agency names Penang, Selangor, Johor and Kuala Lumpur as clusters (MIDA, 1 Jul 2026).
How much of Malaysia’s chip trade goes to the United States?
- Exports to the US were RM282.07bn in January to September 2026, up 69.1%. E&E was about 64.2% of that, and semiconductors 44% of the E&E part (Malay Mail, 28 Oct 2026).
- Malaysia supplied “nearly 20%” of US semiconductor imports in 2024, worth US$16.2bn (TrendForce, 11 Jul 2025). No 2025 or 2026 share is published.
- Tariff rules are on the strategy page.
Conflicting figures
Several headline figures come in more than one version.
| Point | One source | Another source |
|---|---|---|
| E&E exports, 2025 | RM711.61bn (The Star, 11 May 2026) | RM712bn (The Vibes, 12 Oct 2026) |
| Semiconductors as a share of E&E exports | 64.5% in 2024 (Malay Mail, 4 Sep 2026) | 73.7% in the first half of 2026 (MalaysiaSME, 28 Jul 2026) |
| Share of global chip trade | 7.3% of exports in 2024 (Bank Negara Malaysia, 2024 review) | “Approximately 7%” of trade, no year (MIDA, 1 Jul 2026) |
| ASE Penang investment | RM4.5bn (Bernama, 18 Feb 2025) | US$300m (Taiwan News, 18 Feb 2025) |
| X-Fab Sarawak expansion | RM3bn (MIDA, 12 Sep 2025) | “$600 million” (X-Fab, 12 Sep 2025) |
What is not public
We could not confirm these from a published source as of 11 November 2026. Do not assume them:
- A semiconductor-only employment figure
- The year and method behind the 13% packaging share
- Malaysia’s share of US chip imports for 2025 or 2026
- E&E exports for the full first nine months of 2026
- Whether Intel’s Penang advanced packaging complex has started operating
- The status of the second phase of Infineon’s Kulim fab
Croutons Research publishes open data and methods on AI data centres in Malaysia. See the open method for measuring AI work per megawatt.
Sources
- Bank Negara Malaysia, Economic and Monetary Review 2024, E&E article (2024 review)
- MIDA, semiconductor ecosystem newsletter item (1 Jul 2026)
- The Star, three local firms get Arm access (11 May 2026)
- The Star, trade in first seven months of 2026 (8 Sep 2026)
- MITI, National Semiconductor Strategy document (2024)
- Malay Mail, Malaysia’s chip ambitions (4 Sep 2026)
- MalaysiaSME, MATRADE first-half 2026 trade analysis (28 Jul 2026)
- The Star, E&E exports likely to exceed RM800bn in 2026 (10 Jun 2026)
- Free Malaysia Today, 13th Malaysia Plan semiconductor flagship (31 Jul 2025)
- TrendForce, Intel to inject US$208m in Malaysia (2 Dec 2025)
- Semiconductor Today, Infineon opens Kulim fab (8 Aug 2024)
- MIDA, Infineon success story (undated)
- Bernama, Micron second Penang plant (13 Oct 2023)
- The Star, AMD new Penang facility (14 Aug 2025)
- MIDA, TF-AMD new manufacturing site (14 Jun 2022)
- Evertiq, TI opens assembly and test factory (14 Nov 2025)
- InvestPenang, Bosch Penang test centre (1 Aug 2023)
- onsemi, Seremban site page (read 11 Nov 2026)
- The Star, NXP factory expansion (13 Aug 2026)
- TNB newsclip, Renesas Penang investment (29 Jul 2026)
- BISinfotech, STMicroelectronics renewable energy deal (8 Nov 2024)
- Bernama, ASE fifth Penang plant (18 Feb 2025)
- MIDA, Nexperia supplier day in Seremban (5 Feb 2026)
- MIDA, X-Fab Sarawak expansion (12 Sep 2025)
- Evertiq, AT&S expands Kulim (2 Jul 2026)
- InvestPenang, Lam Research Penang plant (4 Aug 2021)
- MIDA, Ferrotec second Kulim plant (5 Nov 2026)
- MIDA, MKS Penang factory opening (20 Jun 2026)
- MIDA, AIXTRON Penang facility (5 May 2026)
- MIDA, Chipbond Penang facility (9 Feb 2026)
- Malay Mail, StarFive Penang design centre (19 Feb 2022)
- The Star, SilTerra capacity (25 Aug 2026)
- The Star, Inari photonics and packaging (26 Oct 2026)
- The Star, Unisem Gopeng expansion (9 Oct 2026)
- Bernama, MPI power-module capacity (24 Aug 2026)
- MIDA, Globetronics partnership (21 Nov 2024)
- The Edge, ViTrox expansion (Sep 2026)
- MIDA, Greatech Batu Kawan plant (28 Feb 2023)
- The Edge, Pentamaster third campus (Jul 2026)
- The Star, UWC transition (8 Oct 2026)
- The Star, Frontken expansion (31 Oct 2025)
- MIDA, NationGate AI servers (9 Dec 2024)
- The Star, Oppstar joins 2 nm design ecosystem (5 Oct 2026)
- The Star, SkyeChip lists (21 May 2026)
- Malay Mail, exports to the US up 69% (28 Oct 2026)
- TrendForce, Malaysia and US chip imports (11 Jul 2025)
- The Vibes, E&E trade figures (12 Oct 2026)
- Taiwan News, ASE Penang plant (18 Feb 2025)
- X-Fab, new cleanroom in Malaysia (12 Sep 2025)
Last checked 11 November 2026