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Malaysia’s emergence as a key destination for technology investment

Malaysia, particularly Penang, is increasingly emerging as a technology investment destination and this trend is gaining significant momentum. The growing presence of companies in the semiconductor manufacturing sector, such as Micron, Intel, and AMS Osram, reflects a broader trend to diversify supply chains outside of China to mitigate geopolitical uncertainties.

The surge of investment in Malaysia is also driven by the growing demand for chips, especially in high-tech sectors such as electric vehicles and artificial intelligence. Penang, once known primarily for its beaches, is becoming a major hub for semiconductor manufacturing, and is moving into higher value-added activities such as wafer fabrication and integrated circuit design.

As mentioned, these trends reflect a growing desire to establish secure chip manufacturing capacity outside of China due to the geopolitical tensions and trade restrictions that are impacting the electronic component and, more specifically, the semiconductor market. Many investors consider Malaysia to be a viable alternative given its strategic location and extensive experience in the semiconductor industry.

This increased investment could impact the availability of electronic components: with more companies investing in chip production capacity in Malaysia, there should be greater availability of electronic components in the market in the medium term.

Greater availability, but under what conditions?

Constant availability of electronic components is critical. Customers generally want to buy at the best price and while they may choose the open market route, recognizing it to be less encumbered by manufacturers’ design protections, they still want to ensure that they are buying compliant material.

At Electronic Partner, we specialize in sourcing the best price globally for large orders or for high-value items directly from the manufacturers without involving traditional distribution channels and while maintaining the manufacturers’ respective guarantees.

If you are about to place an order either for a large number of components or for high-value items and are not completely satisfied with the offers you have received, we invite you to share your price and other objectives with us. We will contact our pre-selected suppliers to see if we can meet your requirements. In the event that your targets cannot feasibly be met, we will share all the market information we have gathered with you, free of charge, to optimize your own negotiations with your chosen supplier.

The growth of the semiconductor industry in Malaysia could also create increased demand for rare, obsolete, or hard-to-find items, in which we also specialize. Indeed,we only source authentic components from certified suppliers and use recognized and reputable intermediaries to safely hold your money until you are certain that the sourced components are original and function (bear in mind that the open market is also full of “B series” components!). Before confirming an order, we have the products tested by independent testing laboratories (external to the suppliers) on our customer’s behalf, thereby ensuring that you can verify the test results before the goods leave the supplier’s warehouse.

With a track record of over 20 years as a reliable partner to our customers, we operate globally, providing services that guarantee the quality and safety of your purchases.

Are you certain you are buying the best?

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