Chinese enterprises from companies all over the world are migrating to this country.
The Financial Times published a rather large article on the latest changes in the Malaysian economy against the backdrop of growing contradictions between the United States and China. Intel's chip testing and packaging facility has been operating in this country since 1972, and in general Malaysia is the sixth largest electronics exporter in the world and the largest in the American direction, so not only Americans have recently shown interest in investing in the core sector of this country's economy. but also Chinese manufacturers.
Image source: Intel
The interest of Western companies in localizing production in Malaysia can be explained by the desire to reduce dependence on China. Companies from China, again, are suppliers of American companies; they are simply forced to move their enterprises to other countries, and Malaysia in this regard combines both the necessary experience and other attractive conditions.
However, the rapid growth of semiconductor production in Malaysia in recent years has already given rise to a number of specific problems. Land in certain areas of the country has increased in price by more than 60%, road infrastructure can no longer cope with the flow of traffic, and there is also a shortage of qualified personnel in Malaysia. Every year, about 5,000 graduates of local universities master engineering specialties, but the level of salaries in the corresponding positions does not yet encourage young people to follow this path, and neighboring Singapore attracts some of the young specialists due to a more forward-looking personnel policy. In total, the Malaysian semiconductor industry currently needs approximately 50,000 specialists. Ideally, local authorities would also like to launch processing of silicon wafers in the country to produce chips, but for now the specialization of Malaysian enterprises is limited to testing and packaging, although there is some technological progress in this area.