Malaysia-Netherlands' Memorandum of Cooperation to Strengthen Semiconductor Supply Chain Resiliency
6 September 2025
Malaysia and The Netherlands have entered into a Memorandum of Cooperation (MoC) on Semiconductor Industry to deepen collaboration in the sector, while reinforcing Malaysia’s position as a global semiconductor hub and the Netherlands’ leadership in high-tech semiconductor-related manufacturing and innovation.
This landmark cooperation was signed by Malaysia’s Minister of Investment, Trade & Industry, YB Tengku Datuk Seri Utama Zafrul Aziz, and his counterpart, the Dutch Minister of Economic Affairs, H.E. Mr. Vincent Karremans in The Hague today. The MoC’s framework aligns with Malaysia’s National Semiconductor Strategy (NSS) that seeks to enhance global supply chain resilience, accelerate technological advancement, and drive sustainable economic growth for both nations. The MoC was first mooted by the Prime Minister of Malaysia and the Prime Minister of The Netherlands during the latter’s official visit to Kuala
Lumpur in 2023.
The MoC’s structured platform for bilateral cooperation through the Annual Bilateral Semiconductor Dialogue will facilitate a joint review of progress in specific initiatives, the exchange of information on industry policies and market trends, and coordination in talent development, research and development, and technology sharing.
Speaking at the signing ceremony, Tengku Zafrul said “This partnership reflects our shared commitment to strengthening Malaysia’s assembly, testing, and packaging while also moving up the value chain by leveraging The Netherlands’ expertise in high-end chip-related manufacturing. By combining our unique strengths, we are confident that this collaboration will help enhance global supply chain security, while creating new opportunities for innovation and growth in the global semiconductor industry. Through the structured dialogue and joint initiatives, we aspire to build a resilient, future-proof semiconductor ecosystem that benefits both our nations and the global economy.”
The collaboration underscores the importance of diversifying global supply chains and ensuring that both nations can remain competitive in the face of rapid technological change and evolving market dynamics.
This milestone further reinforces Malaysia’s role as a strategic partner in global supply chains and contributes to the objectives of the National Semiconductor Strategy, with its target of attracting RM500 billion in investments, creating high-value homegrown companies and training 60,000 engineers by 2030.