M’sia can become AI development hub, says semiconductor industry group

GEORGE TOWN: The Malaysia Semiconductor Industry Association (MSIA) today urged Malaysia to position itself as a hub for artificial intelligence (AI) development, saying international investors are setting their sights on the country’s semiconductor sector.

MSIA president Wong Siew Hai said that given the impact of geopolitical tensions such as the Middle East conflict and tariffs on the global tech supply chain, coupled with the strengthening of the ringgit, Malaysia has an opportunity to “serve” the US, China, and the rest of the world in the AI sector by hosting manufacturing facilities.

Wong said MSIA has been meeting frequently with overseas firms from China, Europe, Brazil, and Mexico to brief them on Malaysia’s semiconductor landscape, including in Penang.

He also said that investors from the Netherlands, especially firms that supply to ASML, a Dutch commercial supplier of the extreme ultraviolet lithography machines used to manufacture advanced chips, are showing interest in Malaysia.

“We are going to see more of these (investors). The opportunity is for our SMEs to either supply to them or collaborate with them.

“I encourage these companies to collaborate, because we don’t have the technology that they (foreign investors) have. If you want to learn that technology, the best thing is to collaborate,” Wong said during a panel session at the Penang Economic Forum 2026 at Jen Hotel here.

Emulate China’s ‘super speed’

Wong also urged Penang and Malaysia as a whole to keep pace with China in developing the infrastructure needed to host semiconductor-related investments.

He recalled his 2014 visit to Chengdu, China, during his time with Intel as its vice-president, when the company was looking for new investment sites.

Wong said he noticed that the Chinese city did not have the basic infrastructure to support the semiconductor industry, and recalled asking the mayor at the time how Intel would ship its semiconductor products from Chengdu to the US.

He said he was told that the products would be transported by train to Shanghai for shipping to the US, with the entire process expected to take at least 48 hours.

“I said, ‘That’s not possible. If I want to invest here, you have to make (shipping) faster. Can we have direct flights from Chengdu to the US, or have an international airport?’ We gave them all these recommendations, and they committed to implementing them,” he said.

Wong said that in 2019, he went back to Chengdu to assess its infrastructural progress and was amazed at how the Chinese city had surpassed Malaysia.

“China is doing things at super speed. I think Penang and Malaysia need to move at super speed. Otherwise, we will fall behind,” he said.