Kuala Lumpur (VNA) - Malaysia’s semiconductor industry is benefiting from accelerating China+1 supply chain diversification, deeper localisation by global semiconductor equipment makers and rising demand for optical and power semiconductors tied to artificial intelligence (AI)-driven data centre expansion.
According to a recent report by Hong Leong Investment Bank Research, Malaysia’s outsourced semiconductor assembly and test (OSATs) largely sat out the first leg of the AI upcycle in 2024-2025 (driven by Graphics Processing Unit [GPU]/High Bandwidth Memory [HBM] demand), tracking instead the protracted analog downcycle as post-pandemic inventory correction weighed on soft auto/industrial demand.
“We see 2026 as the inflection point. As AI DC buildout accelerates, high-performance power management chips are emerging as the new demand driver for analog suppliers, therefore offering a new growth vector for Malaysia OSATs as well,” the research house said noted.
According to it, the reason is straightforward – AI server racks are becoming denser and more power-hungry (from 120-150kW to 600-1,000kW eventually), necessitating more power semi content across the entire power delivery chain.
Efficient power delivery is increasingly a binding constraint in AI DC deployment, and ongoing architectural shifts are structurally expanding addressable content./.
Malaysia, Indonesia approve asset transfer to new oil and gas joint venture
The Indonesian and Malaysian governments have approved the transfer of production-sharing contracts for these assets from Petronas and Eni to SEARAH. Following the approvals, the companies are completing internal procedures to finalise the transaction. The new venture is expected to commence operations on July 1.
