Malaysia is facing a new challenge in its semiconductor industry: not attracting chip plants, but retaining value within the country. Despite a 50% increase in exports and RM91.9 billion in approved investments since 2024, the focus has shifted to developing local capabilities in design, supply chains, packaging, and talent. This is crucial for Penang and Kulim to ensure they capture more economic value amidst potential global tariffs and bottlenecks. AI
IMPACT Focus on local talent and supply chain development in semiconductors could accelerate AI hardware innovation.
RANK_REASON Significant policy and infrastructure development in a key global industry.
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