ETP targets 50 integrated circuit producers by 2015

MEETING TARGET: Efforts will be intensified to attract multinational corporations and grow local players


ONE of the critical areas for the electrical and electronics sector (E&E) this year is to address the shortfall in meeting the key performance indicators (KPI) target for the growth number of integrated circuit-design firms.

The issue is highlighted in the Economic Transformation Programme's Annual Report 2011.

The roadmap for the transformation of the E&E sector requires a 10 per cent annual growth rate in the number of integrated circuit-design companies to produce the much needed highly-skilled human capital.

The Malaysian Industrial Development Authority (Mida) and supporting agencies, namely the Northern Corridor Investment Authority (NCIA), the Economic Planning Unit, MDeC, Silterra and the fabrication consortium, will intensify the drive to attract multinational corporations (MNCs) and grow local players.

The target is for a total of 50 players by 2015.

Under the National Key Economic Areas (NKEA) for E&E are four business opportunities, namely, semiconductors, solar, light-emitting diodes (LED) and industrial electronics.

The report said to date, the International Trade and Industry Ministry and Ministry of Science, Technology and Innovation have yet to transform these opportunities into Entry Point Projects (EPPs) as the focus for the first year was on the successful implementation of the EPPs.

Another target for 2012 is to increase silicon production and support the growth of substrates manufacturers and related industries.

Sarawak will be promoted as a site for silicon producers and solar glass, providing incentives to new silicon producers.

To address the power needs of the industry, priority will be allocated for hydroelectric power to the solar industry rather than other energy intensive-industries like aluminium and steel.

Apart from growing solar wafer and cell producers and increasing solar module producers, it also targets to develop LED front- end operation and creating local solid state lighting (SSL) champions.

Malaysia has the potential to become a global leader and hub for SSL, which is a sub-segment of the larger lighting market.

Malaysia also hopes to attract additional 30 per cent investments in test and measurements from MNCs and attract more local test and measurements design partners.

On the automation equipment manufacturing, the report said the Centre of Excellence for Machinery and Engineering Services is expected to be operational at the NCIA Technology Design Centre by the first quarter.

As for building an electrical home appliance manufacturing hub and international distribution network, a proposed consortium with Pensonic is expected to hit annual sales of RM2.2 billion and to source 50 per cent of its requirements locally by 2020.

Four cross-cutting common enablers were also listed as critical enablers to the E&E NKEA - northern corridor, Klang Valley, Johor, as well as Sabah and Sarawak.

In the last quarter of 2011, The Performance Management & Delivery Unit held a three-month long Cities and Corridors Lab, together with the corridor authorities, such as NCIA and various stakeholders in the area.

The common enablers were addressed in these labs, of which the three-feet level programmes will be announced this year.

The 2020 target is to have an incremental GNI impact of RM53.4 billion and additional 157,000 jobs, the report said.