KUALA LUMPUR, Oct 14 — Local semiconductor companies must translate Budget 2027’s allocation into greater participation in higher-value activities such as integrated circuit (IC) design, as Malaysia seeks to strengthen its position in the global semiconductor supply chain, said Tengku Datuk Seri Zafrul Abdul Aziz.

Speaking on Bernama TV’s The Nation programme, the Malaysian Investment Development Authority (Mida) chairman said Malaysia has developed a mature semiconductor ecosystem over more than five decades but needs to move beyond its traditional strengths in assembly and testing to capture greater value from the industry.

“We have Malaysian companies that are already global champions and they are plugged into the global value chain, but we need to see more. The ecosystem is quite mature but we need to strengthen the way we are in that value chain,” he said in the interview on Budget 2027 aired today.