The Malaysian Investment Development Authority (MIDA) and Infineon Technologies have launched a vendor development program to enhance Malaysia's semiconductor industry.

According to Bernama and SME Asia, MIDA and Infineon have introduced a vendor development program to strengthen Malaysia's semiconductor industry. Benefiting 139 local companies and drawing over 190 participants, the initiative focuses on enhancing local capabilities to meet the sector's growing demands.

MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid emphasized that a strong semiconductor ecosystem relies on technology and skilled workforce development. MIDA supports local suppliers by offering platforms to boost their technological skills and ensure their workforce is ready for future semiconductor manufacturing. He noted that the MIDA-Infineon partnership has led to valuable collaborations promoting industrial progress and competitiveness.

Ng Kok Tiong, Infineon's senior VP and managing director, highlighted the company's dedication to helping local vendors grasp the intricate demands of high-tech wafer fabrication. He stated that by cultivating a network of vendors offering high-value and dependable services, Infineon can boost its growth in Malaysia.

• Infineon's world's largest 8-inch SiC fab in Malaysia faces delay

In August, Infineon Technologies AG inaugurated the first phase of its 8-inch silicon carbide (SiC) semiconductor fab in Kulim, Malaysia, solidifying its position in the global supply chain. Malaysian Prime Minister Anwar Ibrahim hailed the US$7.7 billion facility as a milestone in Malaysia's ascent as a key semiconductor hub.

The plant, the largest worldwide, enhances Malaysia's semiconductor ecosystem and supports global demand for emerging technologies. Prime Minister Anwar emphasized the need for local governments and universities to train talent to strengthen the chip industry amid rising global investment in semiconductor production.

However, in November, a report by SemiMedia revealed that Infineon is postponing the second phase of its Kulim fab expansion due to a downturn in the semiconductor market. This delay is accompanied by a 10% reduction in investment, as indicated in their 2024 financial results, and is coupled with impending job cuts.

Amid rising US-China tensions, Malaysia has emerged as a key player in the global semiconductor supply chain thanks to its strategic location, workforce, and supportive policies, which attracted substantial investments from major tech companies like Infineon, Intel, and STMicroelectronics.