Malaysia's semiconductor packaging and testing sector is experiencing rapid growth driven by Taiwanese and other foreign investments, according to PwC Taiwan. The firm highlights Malaysia's strategic advantages, including its diverse talent pool, geographic benefits, mature legal framework, and supportive policies, as key factors positioning the country as an emerging hub for semiconductor and high-tech industries in Southeast Asia.
At a recent PwC Taiwan seminar, industry experts discussed challenges faced by Taiwanese companies when establishing factories overseas, particularly time constraints. Once customer demand is identified, the urgency to complete construction and ship products increases. Navigating complex permit processes, which require coordination of regulatory applications, often tests project management teams who must adapt quickly to seize external business opportunities.
The growing data economy in Malaysia, coupled with rising demand for AI technology and large-scale data centers, has expanded the semiconductor and server equipment markets. For Taiwanese firms, setting up additional production bases in Malaysia enhances operational resilience. PwC also pointed out that Malaysia's British Commonwealth-based legal system and multicultural environment facilitate connections with ASEAN and South Asian markets, making it a noteworthy regional investment hub alongside Singapore.
Establishing manufacturing operations in Malaysia involves several key steps for Taiwanese companies, such as company registration, land acquisition, bank account setup, and applications for Manufacturing Licenses. Environmental assessments and Licensed Manufacturing Warehouse permits, essential for export-oriented businesses, also play critical roles. PwC recommends early strategic planning to maximize Malaysia's advantages and foster long-term business growth in the semiconductor sector.
Article edited by Jack Wu