Blogger Trial Order No. PO_ASE000250825

, Overcoming land and water scarcity Semiconductor manufacturing can be divided into design, production, packaging and testing. Malaysia’s forté is in the latter two, where it has a market share of roughly 13%. Packaging and testing refers to processing wafers that have passed testing in accordance with the product model and function to obtain independent chips. The process requires a vast amount of clean water. Penang is an island, and thus faces natural constraints in the supply of water and land. Chief Minister Chow is candid about the severe challenge of water shortage on the island, which has been exacerbated by climate change and water pollution. Penang is currently only able to meet 15% of its total demand for water and relies on neighbouring Kedah to make up the rest. As demand increases, the development of Penang’s semiconductor industry will be affected if it cannot effectively ensure a stable water supply. The Penang government has planned to complete several short to medium term projects by 2028 to bolster the state’s water supply. There are also plans to divert water from nearby Perak, which would resolve Penang’s water supply woes by 2030. But the challenges do not stop there: the Penang state government has projected that all available land for development will be used up by 2030. To address the issue of land scarcity, the Penang Development Corporation is mulling over land reclamation as a way to increase its reserve of land, and is studying reclaiming about 120 square kilometres of land on Seberang Perai mainland for the construction of a new industrial park. Developing a comprehensive value chain in the country As the semiconductor industry becomes a pillar of the country’s economy, several Malaysian states are also after a piece of the pie. Selangor has the backing of the federal government to develop the biggest industrial park dedicated to the design of integrated circuits (IC) in Southeast Asia, and is offering government subsidies, tax breaks and visa exemptions, among other incentives, to attract global electronics companies and talent. The project is expected to start operation in July, and Malaysia hopes that it will be the boost necessary to make it a global IC design hub. Sarawak Premier Abang Johari Openg recently announced the establishment of the Sarawak Microelectronics Design (SMD) Semiconductors to invest in compound semiconductors. The company will be working with a British company to construct a chip design centre in the state.

Johor has also made its move, and construction of its first semiconductor component plant began last year. The facility is expected to start operations in the fourth quarter of this year. There have been worries that competition from the various states will have an impact on Penang’s standing as a semiconductor hub. But some analysts believe that the different states each have their own strengths and weaknesses, and can focus on different segments of the supply chain so as to complement one another to make up a comprehensive semiconductor value chain. Chua Tia Guan, a senior Malaysian analyst, said when interviewed that Penang’s semiconductor ecosystem is already in place, and other states could learn from Penang’s model to achieve rapid development. “The states may not necessarily be competing against each other, instead they can focus on their strengths and develop different areas of semiconductor manufacturing, enhancing Malaysia’s overall competitiveness,” he said. Chief Minister Chow observed that the semiconductor ecosystem is wide-ranging, with IC design making up just one category. The Penang government will continue to work to attract more diversified investment, including working with the federal government to draw more IC design firms, so as to strengthen the ecosystem. Malaysia’s semiconductor industry is mainly concentrated on packaging and testing â€" the downstream of the supply chain, where there is lower added value and lower profits. The authorities hope to change that by riding on the current momentum to elevate the industry’s position to the middle and high end of the value chain. Wong Siew Hai, president of the Malaysia Semiconductor Industry Association, said that as demand is currently strong, the country should seize the opportunity to develop upstream industries. She said, “We will be able to build a brand new upstream ecosystem and become the first country in Southeast Asia to have a comprehensive semiconductor value chain.” However, semiconductor research and development and design require massive investment and advanced professional know-how â€" an area where the country falls short. ISEAS’s Hutchinson said that although a large number of MNCs have set up manufacturing bases in Malaysia and carry out very sophisticated tasks internally, the amount of linkages they have with local firms is relatively under-developed, and very little technology transfer takes place. The wafer fabrication side has been under-developed as “the local base of supplier firms is not as dynamic and engaged in value-added tasks as could be, this limits the innovative potential.” According to Hutchinson, the model of industrial development pursued by Japan, South Korea and Taiwan has been about pursuing local technological capabilities and know-how, which has put them at the front end of the semiconductor industry. He explained how the focus on attracting investment has resulted in a technological gap as “the model adopted in Southeast Asia in places like Singapore, Malaysia and Thailand has been to provide an enabling environment for MNCs to produce components and other E&E items.” Chief Minister Chow pointed out that among the MNCs investing in Penang in recent years, several are in the business of chip design, and local Penang firms were able to learn from these enterprises. He said, “We are also seeing increasingly more local start-up firms, including SkyeChip and Oppstar. They have started going into design and testing.”

Dear talkto.prolific.oswald@blogger.com,

Reference to the subject above,

We are interested to order your product to be supplied in our market urgently and it would be a large order after this trial is confirmed.
    
Could it be ready by the end of August?

Kindly review the attached Order, confirm and provide the invoice so that we can arrange the deposit immediately.
 


Thank you and Best Regards

Goh Chan         Account Department | Overseas Procurement	E: accounting@bellplogistics.com M: (+852) 5555 2122 T:  (+852) 5555 1122 A: BELLPLOGISTICS CO.,LTD
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