---
title: Could semiconductor giant Malaysia produce GPUs? - Developing Telecoms
description: Malaysia, already a semiconductor powerhouse, is looking to locally produce GPU chips in the next five to ten years, according to Economy Minister Rafizi Ramli.
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Malaysia, already a semiconductor powerhouse, is looking to locally produce GPU chips in the next five to ten years, according to Economy Minister Rafizi Ramli.

A graphics processing unit (GPU) is a specialised electronic circuit initially designed for digital image processing and to accelerate computer graphics. It’s usually a discrete video card or embedded into motherboards, mobile phones, personal computers, workstations and game consoles.

"If we are able to realise the potential to downstream our semiconductors, instead of just doing backend, we are hoping that we can start producing made-by-Malaysia GPUs and chips in the next five to ten years," Rafizi Ramli told a forum.

Reuters reports that Malaysia is a major player in the semiconductor industry, accounting for 13% of global testing and packaging. It has attracted multi-billion-dollar investments from leading firms in recent years, including Intel and Infineon.

According to government agency the Malaysian Investment Development Authority (MIDA), Malaysia, once a humble player in the semiconductor industry, has pivoted from its traditional strengths in back-end manufacturing to cutting-edge design and advanced packaging.

The country’s skilled workforce, strategic geographic positioning and strong government backing have, MIDA says, created fertile ground for the industry to evolve and grow. It attracted over US$232.2 billion in approved investments from 2021 to the first half of 2024, emphasising Malaysia’s resilience and growing appeal as an attractive investment hub on the global stage.

MIDA adds that evolution in the sector is found across the entire value chain, from the latest packaging and testing to integrated circuit design and state-of-the-art manufacturing.

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