Melaka Accelerates Plan to Become Malaysia’s Future Semiconductor Hub

KUALA LUMPUR, 17 July 2026 – Melaka is accelerating efforts to position itself as one of Malaysia’s leading semiconductor and advanced manufacturing hubs through the Melaka Semiconductor Strategic Plan 2026–2035.

The plan was highlighted during the MSIA Dialogue and Networking Session with the Chief Minister of Melaka, held on July 16 at Hatten Hotel. The programme brought together nearly 150 representatives from the semiconductor industry, government agencies, financial institutions and other ecosystem partners.

Organised through a collaboration involving the Malaysia Semiconductor Industry Association, the Malaysian Investment Development Authority, Invest Melaka, Infineon Technologies Malaysia and Maybank, the session focused on talent development, sustainability, industrial excellence and long-term competitiveness.

Melaka’s semiconductor strategy is designed to complement Malaysia’s National Semiconductor Strategy by strengthening local industry capabilities, improving supply-chain resilience and attracting higher-value investments. The state is also seeking to encourage greater technology adoption and help Malaysian companies move into more advanced segments of the global semiconductor value chain.

Malaysia’s electrical and electronics industry recorded RM6 billion in approved investments during the first quarter of 2026, making it the leading manufacturing industry for approved investments during the period. Melaka’s established industrial base, skilled workforce, supplier network and strategic location are expected to help the state capture a larger share of future opportunities.

The state has more than five decades of semiconductor industry experience. Its development agenda includes aligning technical and vocational education with industry needs, strengthening local suppliers and supporting the adoption of automation and advanced manufacturing technologies.

Industry representatives have also highlighted the importance of establishing a clear semiconductor roadmap shaped by market demand. A proposed Melaka Centre of Excellence could play a central role in developing industry-ready talent, promoting innovation and encouraging deeper cooperation between businesses, universities and government agencies.

Melaka recorded RM14.68 billion in approved investments in 2025, providing the state with a strong foundation for continued industrial expansion. New infrastructure initiatives, including high-technology industrial parks and improved logistics connectivity, are expected to support its ambition to attract global semiconductor and advanced manufacturing companies.

The semiconductor initiative reflects Malaysia’s broader effort to expand beyond traditional assembly and testing operations into higher-value activities such as chip design, advanced packaging, intelligent manufacturing and technology-driven innovation. Malaysia’s National Semiconductor Strategy also aims to train and upskill 60,000 highly skilled engineers by 2030.

Through continued cooperation between the public sector, private companies, educational institutions and financial organisations, Melaka aims to build a more resilient and competitive semiconductor ecosystem capable of supporting quality employment, sustainable investment and Malaysia’s position in the global technology supply chain