The Malaysian automotive semiconductor market will witness significant growth in 2025, mainly benefiting from the advancement of the National Semiconductor Strategy (NSS) and the surge in global demand for electric vehicles and intelligent driving. As a global hub for semiconductor packaging and testing, Malaysia has attracted international giants such as Infineon and Texas Instruments to invest in building silicon carbide power semiconductor and automotive-grade chip production lines. For instance, Infineon's Kulim facility will become one of the world's largest silicon carbide manufacturing bases, directly serving the new energy vehicle market. Government data shows that approved investments in the semiconductor sector from 2024 to 2025 exceed 70.7 billion ringgit, with automotive electronics-related projects accounting for a significantly higher proportion. Local companies like SkyeChip have also introduced their first edge AI chip, MARS1000, applicable to intelligent transportation systems. With semiconductors being designated as a high-value industry under the "New Industrial Master Plan 2030," Malaysia is transitioning from traditional packaging and testing to advanced packaging (such as SiP and Fan-Out) and chip design. By 2027, the country's automotive electronics packaging and testing market share is projected to reach 18% globally. Supported by MIDA's policy incentives and talent development programs, Malaysia is poised to emerge as the core supply hub for automotive semiconductors in ASEAN.
