Advanced Packaging, Malaysia’s Next Semiconductor Battleground - BusinessToday Malaysia

Malaysia is emerging as a significant battleground in the global semiconductor industry, particularly in advanced packaging. As the global semiconductor supply chain undergoes restructuring and geopol... Read original →

Malaysia’s bet on advanced packaging is a calculated geopolitical play amid global semiconductor realignment. Technically, it forces local OSATs to leap from legacy assembly to chiplet integration, upgrading EDA, thermal materials, and substrate supply chains. Regulatory risks loom: while tax incentives attract investment, tightening U.S.-EU export controls on critical tools could inflate TSMC’s localized operating costs. Strategically, Singapore and Vietnam are racing to build competing capacity—TSMC’s potential CoWoS line in Malaysia may trigger retaliatory investments by Intel or Samsung. Over the next 12–24 months, without parallel progress in engineering talent development and cleanroom infrastructure standardization, Malaysia risks becoming a low-margin assembly outpost rather than a true advanced packaging node.