Image credit: The Star
KUALA LUMPUR: The global semiconductor industry has undergone a tremendous pace of growth, driven by demand for technology and innovation over the past one year.
As capacity building has been the theme in 2022, the resulting impact on global semiconductor sales has been rather obvious as growth slowed down last year to just 3.2% year-on-year (y-o-y) to US$573.5 billion (RM2.6 trillion).
Notably, however, the pace of increase has decelerated with growth on a y-o-y basis in the fourth quarter of last year contracting by 14.7%, much steeper than the preceding quarter’s decline of 3% y-o-y.
As the semiconductor industry remains the backbone of technological advancement, the industry is expected to continue to show significant progress in terms of growth once demand is able to absorb the recent capacity-building phase by major global players, in particular those out of China.
Datametrics Reseach and Information Sdn Bhd (DARE) managing director Pankaj Kumar said: “While the industry is experiencing severe headwinds with many major US-based tech companies announcing layoffs, now is not the time for the semiconductor industry to be frugal but focus on long-term resilience.”
He said that at a time when the industry is facing global headwinds while selected markets are impacted by regulatory hurdles, the Malaysian semiconductor sector will continue to be well sought-after by end-users due to its unique occupied slot in the global supply chain.
Pankaj said with the talent crunch that many industry players are facing, this is the time to upskill the present workforce to enable Malaysia-based semiconductor players and related support service providers to be ahead of others.
The environment, social and governance (ESG) theme that is changing how business is done today has caught up with the semiconductor industry as adoption of sustainable business practices is demanded by not only by investors but by end-customers as well.
“Malaysia’s semiconductor industry, which is one of Malaysia’s biggest export earner, must invest in ensuring business processes, working environment and operations adopt best global practices in relation to ESG issues. This will ensure that the industry not only remain relevant but ahead of its global peers in embracing sustainability,” Pankaj said.
Source: https://www.thesundaily.my/business/malaysian-semiconductor-industry-urged-to-embrace-esg-practices-DB10773440