UTeM will provide the land, factory and interns, while MQTech will provide machineries, management, technology and training, said MQTech vice-president Nurulhidayah Ahmad Zahid.
“We have discussed the semiconductor proposal and concluded this project is going ahead as it will be beneficial to both parties.
“This project will enable the transfer of technology to Malaysia and create new job opportunities for locals,” she told a press conference here today.
TSIST focuses on research and development of materials for high-tech industries. Its strength is its core technologies in the manufacturing and purification processes of front-end materials such as quantum materials, third-generation and fourth-generation semiconductors.
MQTech had received a semiconductor-related proposal from TSIST not long after both parties entered into a memorandum of understanding (MoU) to negotiate TSIST’s expression of interest to invest up to a 30% stake in MQTech via participation in its forthcoming corporate exercise.
TSIST CEO Liu Chien-Lung said the company would assist and provide technical know-how to MQTech to expand its semiconductor operation in Malaysia.
“We are serious and committed to this proposal, which includes three phases for the semiconductor plant. Phase one will take around one to three years to be fully implemented. The required workforce is from 50 to 500 workers for the three phases,” he said.
Liu added it chose to invest in MQTech as it is currently the smallest semiconductor company listed on Bursa Malaysia in terms of market capitalisation, and the most accommodative compared to the larger players.
Liu said TSIST aimed to turn MQTech into a “semiconductor giant” and a key world market materials supplier that focuses on third generation semiconductors, while establishing a vertically integrated industry chain and develop fourth generation semiconductors.
He also noted that Malaysia is a good country in terms of having a stable government, modern work culture and with multilingual people, which boosts TSIST’s confidence to invest in the country.
On semiconductor shortages, Liu said the lack of supplies was due to some issues, including political and raw material imbalance.