Core Viewpoint - Malaysia's potential as a hub for advanced semiconductor manufacturing, packaging, and processing heavily relies on talent development, despite its advantages in infrastructure, business-friendly policies, and geopolitical neutrality [2][3]. Group 1: Talent Development Challenges - The semiconductor industry faces significant challenges, particularly a shortage of engineers and integrated circuit (IC) designers, with 72% of companies hiring in Q1 2025 [2][3]. - Only 0.3% of the electrical and electronics workforce holds advanced degrees, indicating room for growth in the sector [2]. Group 2: Government Initiatives - The Malaysian government has allocated approximately 10% of a 25 billion ringgit fund to train and upskill 60,000 engineers by 2030 to support advanced manufacturing and R&D in the semiconductor industry [3][4]. - Measures to attract and retain talent include establishing a university focused on STEM, providing job opportunities for foreign STEM students, and incentivizing foreign talent [3]. Group 3: Industry Opportunities - There is increasing interest from Chinese semiconductor companies to expand into Malaysia, leveraging local infrastructure for global exports [3][4]. - Malaysia is actively seeking high-value foreign direct investment and encouraging local private sector collaboration to strengthen the semiconductor ecosystem, particularly in advanced packaging [4]. Group 4: Strategic Partnerships and Investments - Malaysia has formed a strategic partnership with Arm Holdings plc, committing to invest $250 million over ten years to acquire chip design blueprints and training [4]. - The country aims to transition from chip assembly and testing to high-value semiconductor design and production, necessitating further investment in the semiconductor supply chain [4].