Automotive chips are primarily manufactured by the world's leading semiconductor companies, which maintain significant production facilities in Malaysia, including global leaders such as Intel, Infineon, STMicroelectronics, NXP, Micron, and ON Semiconductor. As a critical hub in the global semiconductor supply chain, Malaysia holds approximately 13.7% of the worldwide market share in automotive chip packaging and testing. For instance, Infineon's Kulim facility serves as its largest silicon carbide production site, while domestic policies like tax incentives (e.g., exemption from CKD electric vehicle excise tax until 2027) further bolster the industrial ecosystem. Automotive-grade chips must meet stringent certifications such as AEC-Q100. Although the market remains dominated by foreign firms, Malaysia is advancing its chip design capabilities through technical collaborations (such as a 10-year partnership with Arm), with a goal of reaching RM1.2 trillion in semiconductor exports by 2030. As electric vehicle adoption rises (targeting 15% by 2030), local chip demand will grow steadily, reinforcing Malaysia's role in the global automotive supply chain.
