Introduction

Malaysia, Singapore, Vietnam, and Thailand are pursuing differentiated but complementary industrial strategies to upgrade their roles in the semiconductor value chain.¹²³⁴⁵⁶⁷

Malaysia is moving beyond outsourced assembly and test toward advanced packaging, integrated circuit (IC) design, and ecosystem development under a national strategy. Singapore is reinforcing its position in high-value wafer fabrication, research and development (R&D), and advanced packaging through the RIE2030 Semiconductor Flagship.

Vietnam has adopted a phased national strategy anchored in workforce development and selective capability-building across design, packaging, and fabrication.

Thailand is targeting power semiconductors and related segments, supported by investment-promotion measures and sector-specific incentives.

National industrial strategies in the semiconductor value chain

1. Malaysia: advanced packaging, IC design, and ecosystem deepening

Malaysia launched a National Semiconductor Strategy (NSS) in 2024 to strengthen its long-standing role in semiconductor assembly and testing and move into higher value-added segments.¹ The strategy identifies IC design, advanced packaging, and semiconductor manufacturing equipment as priority areas for upgrading, alongside measures to strengthen domestic firms and supply-chain capabilities.¹

The NSS aims to scale local champions, expand high-skill engineering roles, and attract higher-value investment rather than remain concentrated in mature back-end operations.² The policy direction reflects a shift from volume-based assembly toward technology-intensive activities such as advanced packaging and design services.¹²

2. Singapore: R&D-led upgrading and advanced manufacturing under RIE2030

Singapore’s approach centers on maintaining a high-value position in wafer fabrication, R&D, and advanced semiconductor manufacturing. In December 2025, the government launched the Research, Innovation and Enterprise 2030 (RIE2030) plan, which includes a dedicated Semiconductor RIE Flagship.³

The RIE2030 framework allocates sustained public funding to research and translational capabilities, with semiconductors designated as a strategic technology domain.³⁴ The Semiconductor RIE Flagship is designed to strengthen process R&D, advanced packaging research, and industry-research linkages to anchor high-value manufacturing and engineering activities.³⁴

This strategy reinforces Singapore’s role in capital- and knowledge-intensive segments of the value chain, including advanced fabrication and corporate R&D, rather than competing primarily on cost-based assembly.³⁴

3. Vietnam: phased national roadmap anchored in workforce and selective fabrication

Vietnam adopted Decision No. 1018/QĐ-TTg (September 2024) establishing a national semiconductor industry development strategy to 2030, with a vision to 2050.⁵ The strategy outlines a phased roadmap covering research, design, manufacturing, packaging, and testing, with defined milestones for each stage.⁵

Complementing this, Decision No. 1017/QĐ-TTg (September 2024) establishes a national human resources development program for the semiconductor industry through 2030.⁶

The policy framework positions Vietnam to expand from assembly and testing into design, packaging, and selective fabrication capabilities over time, supported by targeted foreign investment and domestic skills development.⁵⁶

4. Thailand: focus on power semiconductors and targeted investment promotion

Thailand’s strategy emphasizes segment specialization aligned with existing strengths in automotive and electronics manufacturing. The Board of Investment (BOI) identifies power semiconductors, sensors, photonics, discrete devices, and analog components as priority areas for development.⁷

The BOI Investment Promotion Guide 2025 sets out tax incentives, qualification criteria, and facilitation measures applicable to semiconductor and advanced electronics projects.⁸ These instruments are intended to attract higher value-added production and encourage technology transfer in targeted segments.⁸

Thailand’s approach centers on deepening capability in power and specialty semiconductor segments while leveraging investment-promotion tools to support upgrading within a defined set of product categories.⁷⁸

Conclusion

All four economies are pursuing semiconductor upgrading, but through different industrial policy configurations. Malaysia is building on its assembly base to expand advanced packaging and design capabilities. Singapore is consolidating a high-value position through sustained R&D investment and advanced manufacturing under RIE2030. Vietnam is implementing a phased, workforce-centered national roadmap spanning design to fabrication. Thailand is targeting power and specialty semiconductor segments supported by structured investment incentives.

Together, these strategies reflect a regional pattern of specialization and incremental upgrading rather than attempts to replicate the entire semiconductor value chain in each economy.⁹