By Danial Dzulkifly
KUALA LUMPUR, April 22 — Prime Minister Datuk Seri Anwar Ibrahim has announced the development of Southeast Asia’s largest integrated circuit (IC) Design Park based in Selangor, an indication that Malaysia is finally moving up in the semiconductor value chain.
This will be done with the support of the Selangor government, he said in his keynote speech at the KL20 Summit 2024 today.
According to Anwar, the park will be a hub for many semiconductor industry players to set up their base in the region and subsequently provide a positive spillover effect for the country.
“In semiconductors, Malaysia’s substantial hold on the backend has made it conducive to pursue high-value frontend work, chiefly in the IC design category.
“That is why today, I am pleased to announce the largest IC Design Park in Southeast Asia that will house world-class anchor tenants and collaborate with global companies such as ARM Ltd.
“This is done with the backing of the Selangor Information Technology and Digital Economy Corporation (Sidec) and Selangor government, and is proof that momentum is already being built on the ground,” he said at the Kuala Lumpur Convention Centre, here.
Anwar also affirmed Malaysia’s commitment to turn the country into an axis for leaders in semiconductors, clean energy, agritech, and Islamic fintech.
The IC Design Park, which will begin operations by July this year, is strategically located in a 45,000 sq ft MSC-status Class A business building in Puchong, with a potential expansion to 60,000 sq ft.
The primary goal of the park is to promote original design manufacturing (ODM), encouraging local involvement in product design, prototyping, and production — shifting from “Made in Malaysia” to “Made by Malaysia.”
The facility has been meticulously designed to accommodate four to six local and international IC design companies and is expected to employ at least 300 local IC design engineers.
Pivoting up the value chain
Later, during a press conference, the state executive council for investment, trade, and mobility, Ng Sze Han, said the IC Design Park is a testament to the state’s commitment to helping the Federal government achieve its aspiration of pushing Malaysia up the semiconductor value chain.
The facility’s establishment signifies a pivot from backend manufacturing, which Malaysia has been traditionally known for in the semiconductor industry.
While the country already has an extensive track record in backend manufacturing, he said now is the time to focus on IC design, which is a higher position in the value chain.
“The sector will employ professionals who command higher salaries and attract high-quality talent, thereby boosting the local economy.
“We hope the park will attract more major players in the future and boost momentum for international semiconductor companies to establish bases in the state,” Ng said.
Sidec chief executive officer Yong Kai Ping said there are plans to hire up to 300 professional engineers within the first year of the IC Design Park’s operations.
These engineers are expected to receive salaries ranging from RM5,000 to RM7,000, which is a higher salary bracket for graduates.
“The facility is expected to draw up to RM1 billion in investment and is projected to have a positive spillover effect on the state, estimated between RM500 million to RM1 billion.”
In a statement, Sidec said the IC Design Park has secured the commitment of four influential partners: ARM Ltd, Phison Malaysia (MaiStorage), SkyeChip Sdn Bhd, and Shenzhen Semiconductor Industry Association.
This strategic partnership was formalised following the signing of a letter of intent between Sidec, the state government, and all four firms at the KL20 Summit earlier.
Among others present at today’s event were State Secretary Datuk Setia Haris Kasim and Cabinet members.
