(From left) Chuah, Loo, Chu, Chow, Liew, Tan and Wong at the launch of Atec.
Malaysia Semiconductor Industry Association (MSIA) has announced the establishment of an Advanced Technology Equipment Cluster (Atec).
It aims to fortify the country’s position in the global semiconductor industry amid current challenges and opportunities, which include an influx of foreign direct investments (FDIs) to the Asean region.
MSIA president Datuk Seri Wong Siew Hai said there were about a thousand companies specialising in cutting-edge technological, machining and support equipment in Malaysia.
The cluster, led by local equipment manufacturers such as ViTrox, Greatech and Pentamaster, will combine their expertise to meet increasing demands of industries.
As production lines rely on equipment, these firms underpin industries, especially those producing semiconductors, solar panels and medical devices.
The cluster will also work to meet increasing demand for high-tech machinery from manufacturers adopting Industrial Revolution (IR) 4.0 technologies.
These technologies include smart factory automation, advanced semiconductor packaging, assembly and testing, machine vision, artificial intelligence, the Internet of Things and digitisation.
Wong said the cluster would enable Malaysia to better meet such demands and contribute billions of ringgit in export revenue.
He was confident that this would cement the country’s status as a hub for high-tech innovation.
“With current geopolitical shifts, including US-China trade tensions and ongoing de-globalisation trends, companies worldwide are re-evaluating their operations and supply chains.
“Atec will secure our industry against these disruptions and position us to capture new growth opportunities in the region,” Wong added during the launch of the cluster.
The ceremony, held at Amari SPICE Penang in Bayan Lepas, was launched by Deputy Investment, Trade and Industry Minister Liew Chin Tong and Penang Chief Minister Chow Kon Yeow.
In his speech, Liew said the formation of Atec should help speed up the localisation of equipment buys by multinational companies that relocate or set up operations here.
“We have to ensure that FDIs into Malaysia contribute to wider benefits for local firms and also better jobs as well as pay for Malaysians.
“This can help the rise of Malaysian giants that have global impact,” he noted, citing examples like Samsung of South Korea or Huawei of China.
He said the government was aware of this challenge and had thus set up the National Semiconductor Strategy (NSS).
Within the next decade, the NSS aims to create 10 Malaysian tech companies with annual revenues of US$1bil (RM4.36bil) each and a further 100 firms making RM1bil each.
“For Malaysia to be an advanced economy, we need to adopt, automate and innovate technologies.
“This will help us reduce dependence on unskilled foreign labour in various sectors,” he continued.
Liew pointed to agriculture, furniture, construction and even transport as sectors that could benefit from automation with the help of equipment companies.
“While the Malaysian semiconductor industry has been very well connected vertically to the global supply chain, it’s time for us to foster horizontal linkages.
“This could be in designing or inventing chips that solve national or regional challenges in health, food security, transport, green transition and beyond.
“Only with innovation can we create products that improve the lives of millions of people.
“This will turn us into a tech powerhouse for decades to come,” Liew enthused.
Chow said Penang, with its vast history of excellence and leadership in the electrical and electronics sector, was ideally positioned to lead.
“The cluster will harness and amplify our strengths.
“It’s an investment in our future that will empower us to meet as well as exceed the demands of IR 4.0.
“The ripple effects will equip us to navigate tomorrow’s tech landscape,” he added.
Wong believes Atec will enable Malaysia to thrive in the face of global competition.
“This initiative reflects our commitment to building a resilient economy that benefits all Malaysians,” he added.
Also present were Pentamaster executive chairman Datuk Chuah Choon Bin, InvestPenang chief executive officer Datuk Loo Lee Lian, ViTrox president and chief executive officer Datuk Chu Jenn Weng, Greatech Technology chief executive officer Datuk Seri EK Tan and officials from participating companies.
