Time is ripe for Malaysia to move upstream into designing chips

Penang can build on success in downstream areas of semiconductor production

20240410 penang chips

An employee inspects a printed circuit board at a production facility of automated test equipment designer Aemulus Holdings in Penang, Malaysia. © Reuters

Wee Chian Koh is an economist with the ASEAN+3 Macroeconomic Research Office in Singapore. Marthe M. Hinojales and Hongyan Zhao are senior economists with the organization.

The increasingly heated struggle between the U.S. and China for dominance in semiconductor technologies has been a godsend for the Malaysian island of Penang.

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