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Malaysia Should Increase Incentives to Attract Advanced Chipmakers: Nomura Analyst
A Nomura analyst suggests Malaysia should significantly boost incentives to attract advanced semiconductor manufacturers like TSMC. The country already excels in back-end activities such as assembly and testing but needs to focus on advanced front-end manufacturing to capitalize on AI-driven chip demand. Malaysia's competitive costs, resources, and geopolitical neutrality position it well to attract global investments. However, competition is fierce, with countries like Japan offering substantial subsidies to secure semiconductor projects.