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Hello reader,
My dad works for an IT company and has been posted in Penang for a couple of years now. The Malaysian state has been a haven for IT businesses for many years, so the move wasn’t all that surprising.
About a month ago, my fiancée and I flew to Penang for a short vacation. While my dad was bringing us around, we talked a little about his work and why Penang was such a good place for companies like the one he works for.
Our chat helped me see why the state, and by extension Malaysia, has become such an attractive location for IT companies and, specifically, why its semiconductor industry has been a shining star in the country’s economy.
However, in today’s story, Emmanuel Samarathisa shares why the sector might need some polishing if it’s to remain that way.
Today we look at:
- Whether Malaysia’s semiconductor industry still has what it takes
- Cloudflare’s new AI marketplace tool
- Other newsy highlights such as Alibaba’s DingTalk launching a new service and Samsung’s new US$1.8 billion OLED factory.
Premium summary
Semi-improvements to semiconductors
Image credit: Timmy Loen
Malaysia’s semiconductor industry has always been an economic powerhouse for the peninsula, and it could stand to get an even bigger boost due to the trade war between China and the US. But to gain that edge, it’ll have to ensure certain things don’t fall through the cracks.
- That’s a big slice: In Malaysia, the semiconductor sector contributes an estimated 25% of the country’s gross domestic product, and more than 200 companies are involved with some kind of chip work.
- The semiconductor gauntlet: Taiwan has its own foundry under the Taiwan Semiconductor Manufacturing Company, but if Malaysia wants its own, it would be extremely expensive – roughly US$20 billion in expenses.
- Brain drain: One major problem for the peninsula is talent – other countries typically provide better financial advantages for Malaysian workers.
Read more: Malaysia’s faulty semiconductor industry calls for a repair
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