Site assessment for the establishment of a new semiconductor plant in Malaysia

Situation

Our client, a global semiconductor manufacturer, was considering options to set up a new semiconductor plant in Southeast Asia,as part of its expansion strategy

We were engaged to conduct a comprehensive country and site assessment, which involves the benchmarking of Malaysia’s macroeconomic, business and regulatory environment and site identification, to inform the client’s investment decision

Approach

• Overview of the Malaysian macroeconomic environment and overall ease of doing business, including an assessment of the wider semiconductor ecosystem and partnership potential
  
• Benchmarking and identification of industrial sites that align with the client’s requirements and an assessment of each shortlisted industrial zone
• Regulatory advice in relation to the establishment of a new foreign semiconductor facility based in Malaysia

Impact

• Assessed the Malaysian macroeconomic, political and social environment, and its future prospects
• Detailed analysis of the competitive landscape in Malaysia and recommendations on potential strategic partners across the semiconductor value chain
• Identified, shortlisted, and assessed industrial zones that fulfilled the clients’ key requirements, including ranking of the relative attractiveness of the shortlisted locations
• In-depth understanding of local regulations, procedures and potential restrictions to establish and operate a new industrial facility
• Provided tax advisory services from the preliminary registration stage to the operations of business, including a robust understanding of all licensing, construction and operational tax regulations 

Snapshot of infrastructure development in Malaysia

Identification and screening of potential industrial zones in Northern Region, Malaysia 

Illustrative approach used to identify potential industrial zones