Hotchip chips are gradually expanding their investment layout in Malaysia, and the first phase of layout implementation is about to be launched.
According to statistics from the Malaysian Ministry of International Trade and Industry (MITI), as the sixth largest semiconductor exporting country, its semiconductors account for 7% of the global trade volume, while the packaging and testing sector accounts for 13%. At the same time, semiconductor product exports account for 62% of Malaysia’s total domestic exports of electronic and electrical products, with a gross domestic product (GDP) of $406.3 billion in 2022, and the semiconductor industry will contribute about a quarter of its revenue. This means that the semiconductor industry plays an irreplaceable role in the sustained development of Malaysia’s economy.
MIDA has successfully helped numerous Chinese companies settle in Malaysia, including attracting many well-known foreign manufacturing companies and already operating Chinese enterprises. It is worth mentioning that Malaysia’s manufacturing industry, including wafer fabs, integrated circuit design, and semiconductor front-end manufacturing, has common areas of convergence with Hotchip Technology’s business.
Nowadays, after decades of development, Malaysia’s chip industry has formed a mature ecological operating system. Data shows that at least 50 chip manufacturers currently have bases in Malaysia, with bases located in Penang and Kulin accounting for over half. To promote the development of Malaysia’s manufacturing and service industries, the Malaysian government has established the Malaysian Investment Development Authority (MIDA) to assist companies interested in investing and establishing businesses in the manufacturing and service sectors in Malaysia. MIDA is the first point of contact for any investor who wishes to establish business and operations in Malaysia.
Hotchip Group’s investment layout in Malaysia is gradually implemented in three stages:
In the first phase, the group will open a local branch in Kuala Lumpur, Malaysia, establish a HIM modular assembly plant for consumer electronics products, and sell them to the local and global markets in Malaysia.
In the second stage, the chip design will be implemented in Penang. Undoubtedly, Malaysia’s mature and sound semiconductor industry chain has provided a favorable development environment for Hotchip Group. At the same time, some partners of Hotchip Group have landed in Malaysia, such as ON Semiconductor, X-FAB, SILTERRA, etc.
Finally, Hotchip Group’s strategic planning will enter the third phase, which is to establish a chip packaging and testing manufacturing plant in Penang. Through this step, Hotchip Group will further improve its industrial chain layout in Malaysia, and gain greater advantages for Hotchip Group in global competition.
Chips have become the rarest and most precious strategic material in the world, and are also involved in the power struggle of great power games. With the implementation of these three stages, Hotchip will have a more complete industrial chain, which can better meet market demand and inject more vitality and momentum into the industry. At the same time, this also provides new opportunities and hope for the development of Malaysia’s semiconductor industry, which will help promote the economic development and industrial upgrading of the region. The investment layout of Hotchip Group fully demonstrates its firm confidence and long-term strategic vision in the semiconductor industry. We believe that there will be more surprises and achievements presented here in the future.
Mr. Lai Zelian expressed a strong willingness to strengthen cooperation with Malaysia’s semiconductor industry in the current layout plan of Hotchip Group in Malaysia. By leveraging the advantages of Chinese manufacturing through chip and modular capabilities, he perfectly integrates manufacturing with business and helps local demand achieve customization. Mr. Sefvan emphasized the chip strength of China Semiconductor Manufacturing Group, which complements Malaysia’s mature and sound semiconductor industry chain. He highly appreciated and recognized the efficient communication and contribution made to promoting the development of chip enterprises during this meeting. At the same time, he welcomes more Guangdong enterprises to invest and develop in Malaysia, actively connecting Guangdong enterprises with local government and enterprise resources in Malaysia, and strengthening economic and trade cooperation between China and Malaysia.
