A series of investments in Malaysia that focused on the semiconductor industry signals the country’s shift to attracting investors in high-end manufacturing.

Among notable semiconductor investments that Malaysia has secured are from German-based global semiconductor company, Infineon Technologies AG, which will invest up to 5.0 billion euros over the next five years to build the world’s largest 200mm silicon carbide (SiC) power fabrication (power fab) plant in Malaysia.

The company said the investment on its Kulim facility in Kedah will lead to an annual SiC revenue potential of about 7.0 billion euros by the end of the decade.

Malaysia still has its competitive edge to attract investors as reflected in the amount of approved investments recorded as of last year.

The amount of approved investments from 2021 until 2023 was high with a fast implementation of projects which was up to 70 per cent. This shows that the country is still competitive and can attract investments.

Previously, MIDA stated that Malaysia achieved a historic investment performance in 2023, with RM329.5 billion of approved investments across various economic sectors.

Within the manufacturing sector alone, which accounted for RM152 billion of the total approved investments, 62.9 per cent or RM95.5 billion originated from existing businesses expanding and diversifying their operations.

Malaysia is poised to achieve the estimated growth of between 4.0-5.0 per cent for this year.