Malaysia should position itself as a key hub for artificial intelligence (AI) development as growing numbers of international investors turn their attention to the country’s semiconductor industry, according to the Malaysia Semiconductor Industry Association (MSIA).
MSIA president Wong Siew Hai said ongoing geopolitical uncertainties, including tensions in the Middle East, global tariff challenges and a strengthening ringgit, have created a unique opportunity for Malaysia to become a strategic manufacturing base serving the United States, China and other major markets in the AI ecosystem.
He revealed that MSIA has been actively engaging with companies from China, Europe, Brazil and Mexico, introducing them to Malaysia’s semiconductor capabilities and investment potential, particularly in Penang.
Wong noted that interest is also growing among Dutch companies, especially those within the supply chain of ASML, the Netherlands-based manufacturer of advanced extreme ultraviolet lithography machines used in semiconductor production.
“We expect to see more foreign investors entering the market. This creates opportunities for local SMEs to become suppliers or establish strategic partnerships with these companies,” he said during a panel session at the Penang Economic Forum 2026 held at Jen Hotel.
He encouraged Malaysian firms to collaborate with foreign technology players, stressing that such partnerships would allow local companies to gain access to advanced expertise and strengthen their competitiveness in the global semiconductor value chain.
At the same time, Wong urged Penang and the wider Malaysian economy to accelerate infrastructure development to remain competitive in attracting high-value semiconductor investments.
Drawing from his experience as a former Intel vice-president, he recalled visiting Chengdu, China, in 2014 when the city lacked much of the infrastructure needed to support semiconductor manufacturing.
He said Intel had proposed several improvements, including better logistics connectivity and direct international flight access to support global semiconductor exports.
When he returned to Chengdu in 2019, Wong said he was impressed by the speed of development, noting that the city had transformed itself into a highly competitive investment destination.
“China is moving at super speed. Penang and Malaysia must also move at super speed if we want to remain competitive and avoid being left behind,” he said.
Industry observers believe the continued expansion of AI technologies and semiconductor demand presents Malaysia with a significant opportunity to strengthen its position as a major player in the global technology supply chain.
