Press release
Malaysia Electronics Manufacturing Market Analysis, Market Size, Market Share, Market Revenue, Market Challenges and Outlook to 2029
Market Assessment
• Malaysia accounts for 13% of global back-end semiconductor output, driven by its strong semiconductor supply chain. Infineon Technologies started operations at its largest power chip plant in Malaysia in 2024, which further strengthened country's semiconductor manufacturing sector. This expansion will create numerous high skill jobs and increase the country's capacity of producing components.
• The development of Johor-Singapore Special Economic Zone will kick off in early 2025 will attract global investments by offering tax incentives and will focuses on majorly manufacturing and energy sectors. The initiative aims to generate more than 20,000 skilled jobs and over 50 projects within next 5 years, to position the country as a hub for electronics manufacturing.
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Government-Led Initiatives
The government of Malaysia has launched many initiatives to strengthen the electronics manufacturing sector. The New Industrial Master Plan 2030 initiative focuses on enhancing country's competitiveness by integrating advanced manufacturing technologies. Through this initiative government aims to promote adoption of Industry 4.0 technologies including robotics and artificial intelligence. This initiative attracts high-tech investments and foster innovation in electronics manufacturing market. Further, tax incentives and grants are implemented to promote research and development in the market.
Market Positioning
The Malaysia electronics manufacturing market is moderately concentrated and have few major players including Flex, Intel, and Sony dominating the space. Flex focuses on smart manufacturing and automation, which has strengthened its position in high-tech component manufacturing. In 2024, company witnessed over 14% increase in revenue from EMS production in Malaysia. Intel Malaysia is a major player in semiconductor market and has expanded its operations in Penang by investing approximately USD 2.25 billion in chip fabrication and testing capacity. Sony focuses on production of consumer electronics and components. The company reported more than 15% increase in export revenue, driven by strong demand for audio and video devices. In upcoming years, market will witness increased entry of multinational corporations (MNCs) and investments in advanced manufacturing technologies which will diversify the competitive landscape.
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Recent News
January 2025: PM Anwar Ibrahim wants Malaysia to be an energy and semiconductor manufacturing hub. Using its strategic location and stable economy, the country is targeting USD 100 billion investments which will focus on renewable energy and AI infrastructure.
December 2024: SP Manufacturing (SPM), a leading Electronic Manufacturing Services (EMS) company, has opened its new manufacturing facility in Senai, Malaysia. This is to increase operational agility and to meet growing customers demand in the region. The new facility complements SPM's existing global footprint, offering advanced electrical and functional testing, in-circuit testing and automated optical inspection.
Future Outlook
The Malaysia electronics manufacturing market is set to undergo rapid transformation through 2029. The market will strengthen country's role in global semiconductor supply chain and attract foreign investments. By 2029, Malaysia is expected to contribute 15% of world's semiconductor packaging and testing output. The increasing AI-powered manufacturing solutions will drive automation across electronics manufacturing, with 60% of electronic manufacturers expected to integrate AI-enabled predictive maintenance and robotic assembly by 2029. Public-Private-Partnership will strengthen the electronics infrastructure, with funding to be allocated for semiconductor research and development programs. Moreover, government's USD 100 billion investment roadmap will drive infrastructure development and expansion of semiconductor fabrication plants capacity.
Consultant at TraceData Research In their latest publication "Malaysia Electronics Manufacturing Market Outlook to 2029: By Market Structure (Contract Manufacturers, Electronics Manufacturing Services (EMS) Providers, Original Design Manufacturers (ODM), Original Equipment Manufacturers (OEM), Small and Medium Enterprises (SMEs), Large Multinational Corporations (MNCs)), By Product Category (Semiconductors, Consumer Electronics, Industrial Electronics, Automotive Electronics, Medical Devices, Telecommunications Equipment), and By End-User Industry (Consumer Electronics, Automotive, Healthcare, Telecommunications, Industrial Automation, Energy)" believe that companies should integrate AI-driven automation in production lines and establish localized supply chains for semiconductor materials to gain a competitive edge in Malaysia electronics manufacturing market.
Get an In-Depth Research Analysis of the Malaysia Electronics Manufacturing Market Size And Forecast [2023-2029]
https://www.tracedataresearch.com/industry-report/malaysia-electronics-manufacturing-market
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