Semiconductors - Malaysia

Malaysia

Revenue in the Semiconductors market is projected to reach US$16.01bn in 2024.
Integrated Circuits dominates the market with a projected market volume of US$14.31bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.41%, resulting in a market volume of US$27.48bn by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

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Analyst Opinion

The Semiconductors market in Malaysia has experienced significant growth in recent years, driven by customer preferences for advanced technology, increasing demand for electronic devices, and the country's favorable business environment.

Customer preferences: Customers in Malaysia have shown a strong preference for advanced technology and electronic devices. With a growing middle class and increasing disposable income, there is a higher demand for smartphones, tablets, and other electronic devices. This has led to a surge in demand for semiconductors, which are essential components in these devices. Additionally, customers are increasingly looking for energy-efficient and environmentally friendly products, which has further fueled the demand for semiconductors that enable the development of such devices.

Trends in the market: The Semiconductors market in Malaysia has witnessed several key trends in recent years. One major trend is the shift towards advanced manufacturing processes, such as the development of smaller and more efficient chips. This trend is driven by the need for higher performance and lower power consumption in electronic devices. As a result, semiconductor manufacturers in Malaysia are investing in research and development to stay at the forefront of technological advancements. Another trend in the market is the increasing focus on the Internet of Things (IoT). The IoT refers to the interconnection of everyday objects via the internet, enabling them to send and receive data. This trend has created a demand for semiconductors that can support the connectivity and processing requirements of IoT devices. As Malaysia aims to become a leading player in the IoT industry, semiconductor manufacturers are investing in the development of IoT-specific chips and solutions.

Local special circumstances: Malaysia has several special circumstances that have contributed to the development of its Semiconductors market. One such circumstance is the country's strategic location in Southeast Asia, which provides easy access to major markets in the region. This has attracted multinational semiconductor companies to establish manufacturing facilities in Malaysia, taking advantage of its proximity to key markets and its well-developed infrastructure. Another special circumstance is Malaysia's government support for the semiconductor industry. The government has implemented various policies and incentives to attract foreign investment and promote the growth of the industry. These include tax incentives, grants for research and development, and the establishment of semiconductor industrial parks. This support has created a favorable business environment for semiconductor manufacturers in Malaysia, encouraging them to expand their operations and invest in new technologies.

Underlying macroeconomic factors: The development of the Semiconductors market in Malaysia is also influenced by underlying macroeconomic factors. One such factor is the country's strong economic growth, which has led to an increase in consumer spending and the demand for electronic devices. Additionally, Malaysia's skilled workforce and well-established education system have provided a steady supply of talent for the semiconductor industry. Furthermore, Malaysia's participation in regional trade agreements, such as the ASEAN Economic Community, has facilitated the export of semiconductors to other countries in the region. This has allowed Malaysian semiconductor manufacturers to tap into a larger market and expand their customer base. In conclusion, the Semiconductors market in Malaysia has experienced significant growth due to customer preferences for advanced technology, increasing demand for electronic devices, and the country's favorable business environment. The market is characterized by trends towards advanced manufacturing processes and the development of IoT-specific chips. Malaysia's strategic location, government support, strong economic growth, and participation in regional trade agreements have also contributed to the market's development.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.