Illustrative image (Source: The Star) The Act, signed by President Joe Biden on August 9, commits over 280 billion USD in federal funding which includes 52.7 billion USD in subsidies to support semiconductor production and research in the US.
Malaysia Semiconductor Industry Association (MSIA) President Datuk Seri Wong Siew Hai said under the Act, the world’s largest economy is expected to build state-of-the-art chip fabrication (fab) plants with process technology of seven nanometres or below.
If they build more leading-edge fabs like this in the US, they will need more assembly and testing services, as the current capacity will not be enough to cater to the new fab capacity.
From that perspective, Malaysia will benefit because the country is still one of the most attractive and competitive places for investment compared with other Southeast Asian countries, he said.
Asked if the Act will affect Malaysia’s fabs’ competitiveness, Wong shrugged off the concern as he said currently, there are only two fabs with less leading-edge technology in the country.
While new technology is anticipated to be transferred to the assembly and testing segment following the establishment of new fabs in the US, Wong said he hopes the government could incentivise companies in Malaysia to help them grow in order to compete with its Southeast Asian peers./.
VNA
