Malaysia aims to locally manufacture its own graphics processing unit (GPU) chips within the next five to ten years, economy minister Rafizi Ramli revealed. Speaking at the Malaysia Economic Forum 2025 today, he envisions that production of the component and even GPUs is in line with the increasing demand from data centres.
“If we are able to realise the potential to downstream our semiconductors, instead of just doing back-end, we are hoping we can start producing made by Malaysia GPUs and chips in the next five to 10 years,” said Rafizi. “This is not only to create a new high-value economic sector that serves our own demand, but we can then become a global player.”
The growing demand for semiconductor components, driven by industries like AI, automotive, computing and IoT (Internet of Things), presents lucrative opportunities for manufacturing countries. With its established role in packaging and testing chips, Malaysia is poised to enhance its global reputation by expanding into component manufacturing.
Rafizi’s remarks came in response to a query from Datuk Khairussaleh Ramli, president and CEO of Maybank, about concerns regarding Malaysia’s push for data centres. The minister acknowledged the challenges, including the high energy and water consumption of data centres and their limited economic impact on sectors beyond property and construction.
Despite these challenges, Rafizi expressed optimism about Malaysia’s aim in becoming a major data centre hub. He highlighted data’s growing importance as a utility on par with electricity and water, projecting significant opportunities for the country over the next 10 to 15 years.
