MALAYSIA’S LEADERSHIP SOUGHT TO SPEARHEAD ASEAN SEMICONDUCTOR INDUSTRY ALLIANCE

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, May 22 (Bernama) -- Semiconductor industries within Southeast Asia must join forces to compete as a united bloc to elevate ASEAN’s collective role in the global semiconductor value chain.

To this end, the Singapore Semiconductor Industry Association (SSIA) has proposed the establishment of an ASEAN Semiconductor Industry Alliance (ASIA).

SSIA director Ang Wee Seng told Bernama in an interview recently that ASIA would enable regional semiconductor industries to compete as a united bloc globally with complementary strengths.

He said SSIA is banking on Malaysia’s current chairmanship of ASEAN to champion ASIA and rally support from member states in Southeast Asia.

ASIA aims to transform fragmented efforts into a cohesive platform for innovation, investment and resilience, said Ang.

"It is about turning proximity into partnership. ASIA is envisioned not merely as an ‘association’ but as a regional alliance, with structured collaboration across government, industry and academia,” he said.

Semiconductor industry is the backbone of future economies

Ang said the semiconductor industry is powering everything from artificial intelligence and quantum computing to green energy and mobility.

Singapore has advanced manufacturing and research and development in the semiconductor industry, Malaysia is a leader in advanced testing and packaging processes, while Vietnam is a rising star in semiconductor manufacturing.

As for the Philippines, it has expertise in downstream processes, while integrated circuits dominate the Indonesian market, according to “Source of Asia”, a one-stop shop for market expansion, providing on-the-ground expertise to guide companies in their growth strategy in Southeast Asia, South Korea and broader Asia.

The ASEAN semiconductor market size, valued at US$95.91 billion in 2024, is projected to grow from US$109.62 billion in 2025 to US$212.33 billion by 2032, according to “Fortune Business Insights”, a company which provides reports to help enterprises and organisations to grow.

SSIA is seeking endorsement and support from all ASEAN nations through the ASEAN Committee on Science, Technology and Innovation (COSTI). 

“COSTI’s endorsement would then pave the way for further coordination through sectoral bodies, such as the ASEAN Economic Community (AEC) or the ASEAN Ministers on Science and Technology.

“This, in turn, would help to galvanise participation from industry players across the region and beyond,” he said.

The proposal is currently under active discussion among selected stakeholders.

Ang said Malaysia will not only be represented in the regional alliance but will also play a critical role in advancing this agenda.

Malaysia can elevate ASEAN's role in global semiconductor value chain

Like Singapore, Malaysia is an international semiconductor hub and is well-positioned to help elevate ASEAN’s collective role in the global semiconductor value chain.

As one of ASEAN’s semiconductor powerhouses, Malaysia plays a pivotal role in the regional value chain, particularly in back-end manufacturing, design services and talent development.

“We hope Malaysia will contribute its strengths to ASIA by providing ideas, leadership, and cross-border collaboration, especially in areas such as workforce mobility, advanced packaging and shared research and development infrastructure,” he said.

As Malaysia holds the position of ASEAN chair this year, Ang was hopeful Putrajaya would champion the ASIA proposal by facilitating policy-level dialogue and rallying high-level support across ministries and ASEAN member states.

“Malaysia’s ASEAN chairmanship this year presents a timely and strategic opportunity to hopefully help shape the agenda to include semiconductor cooperation as a key pillar for digital and economic resilience in the region,” he said.

While ASEAN countries have each made commendable progress, he said their collective competitiveness would be significantly enhanced through greater strategic alignment.

“One phrase that resonates with me is ‘The future is not just Made in ASEAN — it’s Created by ASEAN’. Together, I believe ASIA will strengthen collaboration and help turn this vision into reality,” Ang said.

-- BERNAMA