Malaysia Semiconductor Industry Needs Another 60,000 Engineers For Its Growth
Malaysia’s semiconductor industry is thriving, but it needs an additional 60,000 engineers to support its ambitious growth plans, according to Wong Siew Hai, chairman of the Malaysia Semiconductor Industry Association (MSIA), the Independent Singapore reported.
This is on top of Malaysia current pool of about 90,000 engineers. The goal is to boost Malaysia’s position in the global semiconductor market, currently valued at RM575.45 billion (S$174 billion).
One of the talents driving this effort is Dr Salleh Ahmad, who recently returned to Malaysia after earning a degree in microelectronics at ESIEE Paris and working in France. Now, he is leading Weeroc’s operations at their new facility in Selangor’s Integrated Circuit (IC) Design Park as chief technology officer (CTO). This facility in Puchong is central to Malaysia’s plans to advance from traditional semiconductor services to high-value fabless manufacturing and IC design.
According to The Straits Times, Dr Salleh noted, “Malaysia is a good choice due to its bright industry prospects, government incentives, and the low cost of doing business.” The push for more engineers is driven by the country’s plan to double its chip sector output and market share by 2030.
Currently, Malaysia’s chip sector contributes 7% to global exports and aims to increase this to 15%, boosting its market value from RM575.45 billion to RM1.2 trillion. The strategy is built around three Rs: recruit, retain, and return—bringing in new engineers, keeping existing talent, and encouraging Malaysians working abroad to return home.
The newly opened Puchong chip design hub, touted as one of the largest in Southeast Asia, plays a crucial role in this strategy. It needs up to 400 local engineers, with 60 already hired. According to Ng Sze Han, Selangor’s state executive councillor for investment, the hub offers salaries up to RM6,000 for new graduates.
This is much higher than the national median of RM2,600 and surpasses the salaries in Selangor (RM2,900), Kuala Lumpur (RM3,900), and Penang (RM2,645). This is intended to attract and retain skilled engineers in Malaysia.
“Anchor tenant MaiStorage has established an office in the park. Five Malaysians who previously worked at Taiwan’s Hsinchu Technology Park have returned to lead and mentor local hires as qualified IC designers,” he noted.
Although in Taiwan and France, engineering graduates can earn up to RM9,000 and RM17,000 a month, they usually need a master’s degree.
When asked about competing with countries like Singapore, Mr Ng said that Malaysia “can’t treat Singapore as a competitor” but rather as part of a larger supply chain. “Our cost of doing business is lower than Singapore,” he noted.
He also added that not all talents seek the highest salary or a fast-paced environment; many prefer a better quality of life, which Puchong offers. Companies like MaiStorage, a subsidiary of Taiwan’s Phison Electronics, have already established a presence in the park. Mai Storage’s investment could further stimulate Malaysia’s semiconductor sector, potentially drawing back Malaysian engineers working overseas.
Phison’s Malaysian co-founder, Pua Khein Seng, said he believes “Malaysia is more convenient, even though its efficiency is lower than Taiwan in terms of output.”
Mr Pua also mentioned that if Malaysia’s IC design sector takes off as expected, MaiStorage will require at least 500 engineers to meet its operational needs. Meanwhile, Penang Chief Minister Chow Kon Yeow is optimistic that the “Silicon Valley of the East” will attract and keep skilled workers. He noted that Malaysia is home to over 30 IC design companies, with 28 of them based in Penang.
The talent pool in Penang is well-established, and its capital, Georgetown, is launching a new initiative called “Penang Silicon Design @5km+” to attract, hire, and develop essential talent. MSIA’s Mr Wong added that Malaysia’s chip industry has built a strong ecosystem over the past five decades, helping to retain talent through competitive pay, good job prospects, and a balanced work-life environment.
Major local companies like Oppstar, SkyeChip, Infinecs, and global giants such as AMD and Intel have employed over 7,000 engineers in Penang alone. Infineon Technologies, Germany’s largest semiconductor manufacturer, with over 500 employees in Penang, boasts one of the lowest attrition rates in the sector.
According to Dr Raj Kumar, Senior Vice-President for Technology and Research and Development at Infineon, the company’s 5% turnover rate is well below the industry average of 10 to 15%, thanks to ongoing career development and training.
The Big Question
According to Business Standard, in an effort to build talent for the semiconductor industry in India, the India Electronics and Semiconductor Association (IESA) is planning to send a batch of people — from industry to academics — on deputation to Singapore in the coming months. This is part of the recently-announced memorandum of understanding (MoU) with Singapore Semiconductor Industries Association (SSIA).
Ashok Chandak, President, IESA told the media, “What we are looking at is sending some of the people on deputation to Singapore and the SSIA would support. These people will spend three to six months in some of the fabs, get some training, come back and implement that in India. So, this is how the overall skill and talent development concept is going to work.”
A study by TeamLease Degree Apprenticeship revealed India’s semiconductor industry is expected to face a shortage of 250,000-300,000 professionals across various verticals by 2027. These include research and development (R&D), manufacturing, design, and advanced packaging. The collaboration between IESA and SSIA will have professionals and experts cross visit to train domestic talent.
Ashok added the Indian semiconductor is reportedly also exploring a similar partnership with its Taiwanese counterparts. However, Singapore is preferred since it has an advantage in terms of language and connectivity.
The semiconductor industry, being the backbone of technological advancement, and its success is inherently linked to the skill and knowledge of its workforce. South Korea, home to tech giants like Samsung Electronics and SK Hynix, possesses a rich supply of semiconductor talent coveted globally. However, the aggressive recruitment efforts from China’s tech firms have raised concerns despite known shortcomings.
Given almost is powered by chip technology — from our smart devices to automotive, the competition can only get tighter and China is not inclined to be left behind in the competition. It brazen poaching of Korean talent is a strong message yet back-handed compliment to the latter country’s talent quality.
Amid China’s mission to achieve semiconductor self-sufficiency, the republic strategically targeted Korea’s pool of skilled engineers and researchers. Offering lucrative incentives and promising career prospects, Chinese companies have lured talent away from their Korean counterparts.
Malaysia is aggressively positioning itself as an optimum semiconductor hub. While claims were made that Singapore should not be deemed as a competitor, it just might be a tall order given trade means revenue. It will be worthwhile watching how the chip talent shifts around Malaysia, Singapore, China and Korea.
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