Chang, the founder of Semiconductor Manufacturing International Corporation, a partially state-owned Chinese listed company, said the bilateral ties facilitate easier technology transfers.

“There is a lot of potential due to the very good relationship with China,” he said at a dialogue held here yesterday.

Chang pointed to Taiwan, the leader in the global semiconductor industry, as an example, citing how Taiwan benefited from significant technology transfers from the US and Japan.

“(Similarly) for Malaysia, there can be a transfer of technology from China, Japan, Korea, Taiwan, and even the US, as there are no geopolitical restrictions,” he said.

Malaysia’s semiconductor industry is a key player in the global supply chain, contributing 13% to the world’s back-end semiconductor production.

The country serves as a major hub with multinational electronics companies, particularly in Penang and Kedah, with a focus on assembly, testing and packaging.

Chang said Malaysia could collaborate with more than 1,000 design companies if it pursued this area of the industry.

He also said he was made to understand that many Chinese companies, especially private firms, would be happy to “work with you (Malaysia)” as these companies were not constrained by the same regulations as state-owned enterprises.

“If you invite these private companies, 90% would say ‘yes’. They would like to come here, so welcome them.”

While setting up a semiconductor design house requires significant investments, Chang suggested that interested parties seek seed funding from the government or the private sector.