In a significant move towards establishing Malaysia as a global semiconductor leader, Prime Minister Anwar Ibrahim recently announced the National Semiconductor Strategy (NSS) at Semicon SEA 2024. The strategy, backed by substantial fiscal incentives totalling US$5.3 billion, is designed to transform Malaysia into a crucial hub for semiconductor manufacturing.
This initiative is expected to tap into the rapidly growing sectors such as electric vehicles (EVs), artificial intelligence (AI), and the expansion of data centres, which are increasingly driving semiconductor demand both locally and internationally. Tindaro Danze, President & CEO of Siemens Malaysia, endorsed the NSS, noting its alignment with Siemens' vision for a sustainable and technologically advanced semiconductor ecosystem in Malaysia.
Siemens' strategic role in the semiconductor landscape
Danze emphasized the pivotal role Siemens is poised to play in this initiative, stating, “As the only player in the semiconductor industry with solutions across the entire value chain – from research to design and production – Siemens is committed to supporting the NSS and Malaysia's semiconductor industry more broadly.” Siemens' extensive involvement in the sector allows it to provide unparalleled expertise and solutions at every stage of semiconductor manufacturing.
Furthermore, Siemens Malaysia is responding to the Prime Minister's call to develop a skilled workforce by aiming to nurture around 60,000 engineers in the semiconductor field over the next decade. This effort includes collaborations with the Selangor Technical Skills Development Centre (STDCx) and local universities to devise advanced syllabi that enhance the competencies of the existing workforce and prepare new talents for the industry's challenges.
Pioneering sustainability in semiconductor manufacturing
Sustainability is another critical focus of Siemens, as highlighted in a joint report by Boston Consulting Group (BCG) and SEMI. The report reveals that approximately 65% of manufacturing emissions in the semiconductor industry stem solely from electricity generation, with the overall value chain responsible for 0.3% of global carbon emissions.
Katharina Westrich, Global Head of Electronics, Semiconductors & Simulation at Siemens AG, outlined how Siemens is leveraging its Siemens Xcelerator and other advanced technologies, like digital twin and AI, to optimize energy use and operational efficiency. “Our own plants are equipped with the latest automation and digitalization solutions, showcasing our commitment to sustainability,” Westrich said. Siemens helps companies standardize procedures and harness real-time insights from digital twins, driving operational excellence and supporting their transition into sustainable digital enterprises.
By implementing these comprehensive strategies, Siemens is not only advancing its own operations but is also setting a precedent for the industry to follow, ensuring that semiconductor manufacturing advances in a way that is both innovative and environmentally responsible.
