Apr 15, 2026
Malaysia is transforming its semiconductor sector from a back-end assembly hub into a high-value technology leader – with over CHF 107 billion in targeted investments by 2035. This report outlines where Swiss companies can position themselves along the evolving value chain.
Driven by advanced AI packaging, automotive power electronics, and data centre infrastructure, Malaysia's semiconductor industry is undergoing a structural shift that opens significant opportunities for Swiss precision engineering, cleantech, and industrial automation. The country captures 13% of the global market for semiconductor packaging, assembly, and testing – and is now expanding into front-end wafer fabrication and IC design. With the EFTA–Malaysia Agreement (MEEPA) signed in 2025, Swiss firms benefit from zero-tariff access on industrial goods and strengthened IP protections.
The report by S-GE's Swiss Business Hub SEA + Pacific provides market intelligence, strategic entry points, and an overview of Malaysia's policy framework – including the new outcome-based incentive system effective from March 2026. It also highlights Swiss success stories on the ground and key industry events for 2026/2027.