Silicon Malaysia
IEEE Region 10 Engages with Global Semiconductors Ad Hoc Committee, Malaysia Manufacturing Companies and Malaysia Education Institutes for Semiconductor Workforce Development.
By Dr. Bernard Lim and Hazel Stoiber
Global Semiconductors: IEEE Resources and Communities for Those Working in the Semiconductor Industry
The IEEE Global Semiconductors Ad Hoc Committee formed under the IEEE Future Directions, chaired by IEEE President and CEO, Tom Coughlin, and IEEE Region 6 Director, Kathy Hayashi, since inception in August, 2023 has been actively reaching out to IEEE regions and members with the following objectives:
- To inform members and industry with information related to global semiconductor initiatives and related programs.
- To engage members and groups with opportunities to expand their reach with the initiatives and guide industry advancements.
- To support overall involvement in the industry including Diversity, Equity, and Inclusion (DEI) for industry professionals and Science, Technology, Engineering, and Mathematics (STEM) programs for encouraging the future workforce.
Under Kathy’s direction and support from Tom to extend the effort globally, Dr. Bernard Lim, who is the current Chair of IEEE Region 10 Ad Hoc Committee on Industry Engagement and Round Table has become a member of Global Semiconductors Ad Hoc Committee. Bernard is spearheading the collaborative efforts between IEEE Educational Activities (EA) and Malaysia education institutions to fortify the pipeline of skilled engineers tailored to meet the evolving demands of the semiconductor industry in Malaysia.
The semiconductor industry in Malaysia commenced in 1972 with the establishment of its first free trade zone, accompanied by attractive financial incentives to entice multinational firms to establish assembly plants. At the time, the area of Bayan Lepas in Penang, well known as “Silicon Valley of the East”, was still a muddy field. Advanced Micro Devices, Bosch, Clarion, Hewlett-Packard, Intel, National Semiconductor, Hitachi, and Litronix are among the initial eight companies to establish operations in Penang. This esteemed group earned the legendary title of “The 8 Sumurai” among the Malaysians.
The Outsourced Semiconductor Assembly and Test (OSAT) companies in Penang, Malaysia offer services in the assembly, packaging, and testing facilities for a wide spectrum of integrated circuits (ICs), including analog, digital, mixed-signal, SoC, and RF chips. These services range from wafer testing to qualification testing and to the final production testing of packaged devices. The OSAT market remains highly lucrative, with its Compound Annual Growth Rate (CAGR) experiencing rapid growth driven by ongoing technological advancements in the semiconductor industry. These advancements are essential to meet the increasing demands for Artificial Intelligence (AI), Machine Learning (ML), cloud computing, communications, and other emerging technologies. The passage of the US CHIPS and Science Act in 2022, aimed at alleviating the global chip shortage that affected over 169 industries from 2020 to 2023, has further fueled the growth of the chip industry. According to the Financial Times, in 2023, Malaysia is the world’s sixth largest semiconductor exporter and holds 13 percent of the global semiconductor packaging, assembly, and testing market.
In December 2021, Intel announced that it would invest more than 7 billion US dollar to build a cutting-edge advanced packaging and testing facility in Malaysia. The new facility is anticipated to begin production by the end of 2024 and is expected to create over 4000 Intel jobs and more than 5,000 construction jobs in the country. In addition to Intel, other companies including Bosh, Infineon, Jabil, Lam Research, Micron, Texas Instruments, and Western Digital have announced plans to expand their operations in Malaysia.
Similarly, a growing number of Malaysian-owned companies are capitalizing on the flourishing semiconductor industry by expanding their operations and facilities. One such company is Inari Technology Sdn Bhd, a wholly owned subsidiary of Inari Amertron Berhad, headquartered in Bayan Lepas, Penang. Inari Technology offers a wide range of OSAT services including DC and RF wafer testing, wafer back-grinding, wafer sawing, wafer certification in fiber optic chips, wire bonding, substrate molding, substrate sawing, chip system-in-package (SIP) assembly and test. Earlier this year, Inari Technology unveiled new product offerings in power module packages, memory chips, and optical transceivers, demonstrating its commitment to expanding its technology portfolio.
The expansion of these companies underscores the growing demand for skilled professionals in the semiconductor sector, emphasizing the critical need to cultivate a strong and capable workforce to support and drive the industry's continued growth.
Representing IEEE Region 6 and IEEE Region 10, we met with Mr. Kean Cheong Lau, Group CEO and Executive Director of Inari Amertron, and Mr. Noorazidi Che Azib, Deputy Vice President of Operation Technology and Strategic Programs (OTSP) of Inari Technology. During our meeting, we gained valuable insights beyond their OSAT-related service offerings. Their presentation shed light on the execution and operating culture of Inari, emphasizing qualities such as integrity, trustworthiness, and a can-do attitude. It became evident that Inari is deeply committed to its customers and employees alike, prioritizing their satisfaction and well-being. Furthermore, their dedication extends to philanthropic endeavors within local communities, demonstrating a sense of corporate social responsibility.
Of particular interest was Inari's workforce feeder programs, developed through strategic partnerships with Penang Skills Development Centre (PSDC). These initiatives underscore Inari's proactive approach to talent development and retention, ensuring a skilled and motivated workforce for the future. Overall, our interaction with Inari highlighted not only their expertise in OSAT services but also their strong values, customer-centric focus, and commitment to both their employees and the broader community.
Penang Skill Development Centre (PSDC) is a non-profit organization established in 1989. It has a tripartite management council that includes representatives from industry, government, and academia. It has 198 member companies and over half of its members are in the electronics, manufacturing, and engineering sectors. In the last 34 years, the PSDC has trained over 257,000 participants through more than 13,000 courses, partnered with companies to offer training and then employment. The PSDC has helped develop Malaysia national policies on human capital development and has contributed to Malaysian workforce transformation initiatives. It has been recognized as a model institution for human resource development.
Representing IEEE, we had the privilege of meeting with Dr. Hari Narayanan, CEO of PSDC, and Ms. Lim Wei Chen, COO of PSDC. During our visit, we were thoroughly impressed by the operations of PSDC and its feeder programs benefiting surrounding companies and its students. We engaged in meaningful discussions exploring potential partnerships between PSDC and IEEE Education Activities (EA).
On March 1, 2024, collaboratively, IEEE Region 10 Ad Hoc Committee on Industry Engagement and Round Table, IEEE Malaysia Section, IEEE Electronic Packaging Society Malaysia Chapter, IEEE Electron Device Society Malaysia Chapter, IEEE APU Student Branch, and MIMOS organized “The 2024 Industry Day Series 1” at the Asia Pacific University of Technology and Innovation in Kuala Lumpur. MIMOS was established to initiate research and development in Microelectronics in 1985 under the Malaysia Prime Miniter’s Department to propel Malaysia into a high-technology country.
Today, MIMOS is a strategic agency under the Ministry of Science, Technology, and Innovation (MOSTI) and a premier innovation Centre in Semiconductors, Microelectronics, and ICT technologies, contributing to Malaysia’s socio-economic growth through patentable technology platforms, products, and solutions.
“The 2024 Industry Day Series 1” event revolved around addressing the challenges and opportunities within both the Malaysian and global semiconductor landscape. It provided a platform for industry leaders, professionals, and stakeholders from various sectors to come together and delve into pivotal issues, innovations, and opportunities shaping regional and global contexts. The round table discussions homed in on serious topics, particularly focusing on challenges such as Talent and Technology developments.
Like other semiconductor-developing countries, Malaysia is facing and anticipating a shortage of qualified skilled semiconductor professionals to meet the growing demand generated by the surge in semiconductor-related businesses. IEEE, with its extensive expertise, is positioned to offer valuable guidance and advice in tackling these critical issues. Considering this, IEEE Region 10 has been actively engaged and assumes a pivotal role in supporting and collaborating with industry, government, and education institutions to address this challenge head-on. Moreover, IEEE Region 10’s efforts to spread awareness and opportunities to underserved communities demonstrate a commitment to inclusivity and equity in the field. This kind of outreach can help bridge gaps and create a more diverse and skilled workforce in the semiconductor industry.
References:
https://www.ieee.org, https://ieee-region6.org/, and https://www.ieeer10.org/
https://www.ft.com/content/4e0017e8-fb48-4d48-8410-968e3de687bf
https://www.semi.org/en/sea-newsletter-penang-the-silicon-valley-of-the-east
https://www.edn.com/malaysias-semiconductor-journey-spanning-half-a-century
https://www.psdc.org.my/about/our-story
https://www.mimos.my/main/about-mimos/
Disclaimer: The content of this article is the authors’ personal views and not associated with their current employment.