Key Takeaways
- The Malaysian Ministry of Science, Technology and Innovation partners with Xiamen University and GMPT Software to enhance the semiconductor industry.
- XMU sponsors advanced semiconductor simulation software valued at US$2 million to boost R&D and industry applications in Malaysia.
- The partnership strengthens Malaysia’s semiconductor ecosystem amid shifting global supply chains influenced by US-China restrictions.
Strengthening Malaysia’s Semiconductor Sector
The Ministry of Science, Technology and Innovation (MOSTI) is reinforcing Malaysia’s status in the global semiconductor landscape through a strategic collaboration with Xiamen University (XMU) and GMPT Software. In a recent announcement, MIMOS Bhd disclosed that XMU has sponsored a cutting-edge semiconductor simulation software worth US$2 million from General Mathematical-Physics Technology Co Ltd (GMPT) to MIMOS.
This advanced Technology Computer-Aided Design (TCAD) software is pivotal for enhancing device modeling, material characterization, and process optimization, which benefits both research and development (R&D) as well as various industry applications. The partnership is seen as a substantial advancement in semiconductor R&D in Malaysia, marking a significant milestone in the collaborative efforts between the governments of Malaysia and China.
The TCAD software, designed to facilitate precise simulation of semiconductor devices, is essential for the advancement of next-generation chip production. MIMOS will manage and house the software in its Industry Technology Innovation Centre (ITIC) and MIMOS Academy, ensuring that local talent and professionals can easily access it. To support this initiative, MIMOS will also conduct online training sessions to promote smooth integration of the software into local operations.
Datuk Wong Siew Hai, president of the Malaysia Semiconductor Industry Association (MSIA), highlighted that Malaysia’s semiconductor sector can capitalize on the ripple effects of US restrictions on China, particularly those related to national security and tariffs. With US companies increasingly unable to purchase from China, the “China Plus One” strategy has emerged, encouraging these companies to diversify their manufacturing bases by expanding to additional countries.
He also mentioned that similar trends, such as the “US Plus One” and “Europe Plus One” strategies, are occurring where businesses seek alternative manufacturing locations. As a result, numerous products previously produced in China for global markets are being relocated to Malaysia. The existing restrictions on semiconductor equipment have generated supply chain gaps, which Malaysia has been well-positioned to fill.
Wong emphasized that as certain supply chain components from China face restrictions, Malaysia has the opportunity to cultivate those capabilities domestically. Additionally, companies are increasingly recognizing the risks of concentrated operations in politically sensitive regions and are exploring opportunities in neutral countries like Malaysia, making it an attractive hub for businesses servicing the US, China, and global markets.
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