nkea electronic electrical

7/26/2019 NKEA Electronic Electrical

1/51

ELECTRICAL & ELECTRONICS NKEA

1

ELECTRONICS AND ELECTRICAL


2/51

The case for changeE&E important to Malaysia but with challenges goingforward

Strong heritage to build on

E&E accounts for about 41% of

Malaysias exports (2009 estimate)

Long heritage in semiconductors and

industrial electronics, emerging

strengths in Solar and LEDs

Success stories include: Intel, Agilent,

Motorola, IRIS, Silterra

Contributed to inclusive national

development, with key regional clusters:

Northern Corridor, Klang Valley, Johor

and (emerging) Sarawak

Challenge going forward is to maintain

growth and deepen value-added

Declining economic contribution: E&E

export share fell from 59% in 2000 to

41% in 2009

Increasing competition from China and

other Asian sites

Concentration on assembly leads to

lower value added

Malaysias operating environment short

of world-class; behind Singapore, on par

with China

We need to revitalize E&E

0

200

400

600

RM800B

86

36

87

45

88

55

89

68

90

80

91

94

92

104

93

121

94

154

95

185

96

197

97

221

98

287

99

322

00

373

01

334

02

357

03

398

04

481

05

536

06

589

07

604

08

664

09

553

34%

19%

28%

12%

0.4%

10%

Share of Malaysia'sexports(E&E vs. others)

(86-90)

22%

CAGR

(90-00)

16%

CAGR

(00-09)

7%

CAGR

While E&E exports have grown, E&E exports have

grown more slowly than other exports since 2000

Source: MITI

E&E Others


3/51

E&E in Malaysia needs to move up value chain like Taiwan and

Singapore

Source: Bain Analysis; E&E NKEA lab analysis

E&E in Malaysia is concentrated in assemblyTaiwan and Singapore

concentrating on high value activities

Industrialelectronics

Passivecomponents

LEDs

Solar

Consumerelectronics

PC and

Peripherals

Semi-con

components

N/A for thisanalysis

Low

density

Highdensity

Mid

density

Global or RegHQ

R&D,Design

Mfg (corecomponents,

device)

Assembly,Packaging,

Testing

Sales,Distrib,Service

Density of

companies inMalaysia

MalaysiaLargeplayers(e.g. UL,TUV)

Manylarge players;Taiwan 5th largest

manufacturer(e.g. Motech,DelSolar)

Veryfew(e.g. E-TonSolar)

Fewlocal players(e.g. Motech,DelSolar)Solar

Many(e.g.Everlight,

Lite-On, Lextar, Harvatek)

ManyTaiwan 2nd largest

manufacturer(e.gEpistar, Forepi,

Arima, Tekcore,Huga)

Veryfew(e.g.TSMC tosetupR&D centre)

Fewlocal players(e.g. Epistar,Huga)LEDs

N/A for thisanalysis

Local players expandingcapacity; somenew players

(e.g. Applied Materials)

Few(e.g. Motech,

E-Ton)

IndustrialElectronics

Manye.g. Foxconn,

Acer, Compal,Quanta,Wistron, Inventec,Celestica,Asustek,Qisda

Many(e.g. Inventec,Hon Hai)

FewHousehold

Appliances

Consumer

Electronics

PC andPeripherals

PassiveComponents

SemiconComponents

LCD panel productione.g. AUO, Chimei

Focus onhigher valueadd,complexmanfg

(e.g. Acer,Compaq, IBM,Apple, PackardBell,NEC,

AST,Dell, Compal)

Many(e.g. Flextronics,Quanta,Jabil, Inventec,Asustek)

Focused on resistorproduction 10% shareof

worldproduction

Manylarge players(e.g. SPIL,TSMC, Amkor)

Top2-3foundryplayers

(e.g. TSMC, UMC)

Manyincluding top 2(e.g. TSMC, UMC,

Sony, AMD)

HQ of top 2foundries(e.g. TSMC, UMC)

Minimal presence

of low value adactivities; Labor

intensive activitiesoutsourcedto low cost

countries like China

Global or RegHQ

R&D,Design

Mfg (corecomponents,

device)

Assembly,Packaging,

Testing

Sales,Distrib,

Service

Low

density

Highdensity

Middensity

Density ofcompanies in

Taiwan

Taiwan

Large precisionengineering cluster(e.g. Applied Materials SemiconEqpt)

IndustrialElectronics

Veryfew(e.g. EverlightElectronics)

Fewlarge players(e.g.Phillips & Osram)

Veryfew(e.g. BrightLitesystems)LEDs

Manylarge playerssettingbase

(e.g. FraunhoferISE,VDE, UL,SERIS)

Fewlarge players

(e.g. REC, First Solar)

Fewbut growingrapidly

(e.g.Oerlikon Solar)Solar

Minutepresence(e.g. Whirlpool)

-verysmall

Flextronics HQ

Flextronics HQ

Small centresofsomelarge firms

(e.g. Whirlpool,Panasonic)

Household

Appliances

ConsumerElectronics

PC andPeripherals

Passive

Components

Semicon

Components

Limited production oroutsourceto

ODMslike Flextronics (e.g.Panasonic, LG)

Few(e.g. Sennheiser)

HP Inkfactory;HDD mfgmoving out of

Singapore

Many(e.g. Flextronics,Jabil, Celestica)

Few(e.g. EPCOS, Murata,Fujitsu,Panasonic)

Many(e.g. Murata,EPCOS)

N/A for this

analysis

3of top 4A&T cos

(e.g. ASE, AMKOR, STATSChipPac)

Top3foundryplayers

(e.g. TSMC, UMC,Chartered)

~40IC designcentres(e.g. Infineon,Panasonic)

Samsungregional HQ

Global or RegHQ

R&D,Design

Mfg (core

components,device)

Assembly,

Packaging,Testing

Sales,

Distrib,Service

Low

density

High

density

Mid

density

Density ofcompanies in

Singapore

Singapore

Current E&E focus area


4/51

Path to the target

7

0

10

20

$30B

Today (2009)

10.4

Aspiration

15.7

Target (2020)

26.1

Nominal GNI for E&E sector

Our target was to add $16B (RM 51Mil) in E&E GNI by

2020

Input

Empirical

simulation

Opinion survey

(1000 person

workshop)

The E&E in 2020 Strategy:

Higher value added; larger scale; Malaysian champions

Scale

Large

Small

Value add

Low High

Large scale, high value

add

Large scale, low value

add

Small scale, low value

add

Small scale, high value

add

E&E

2020Electronics

today

Electrical

today

Increase scale of

domestic Electrical

sector

Increase depth of

the value chain


5/51

The E&E 2010 Strategy:

Focus on 4 sectors and 4 regional clusters

4 Focus Sectors 4 Regional Clusters

Semicon: Build out value chain

capabilities with fabs, design and

advanced packaging

Solar: Worlds #2 producer by 2020(from #3 in 2011)

LEDs: Light up the world

with Solid State Lighting

Industrial Electronics: Build on test &

measurement and wirelesscommunication clusters; expand and

strengthen other Industrial

Electronics sub-segments

Build regional E&E clusters in

Northern Corridor, Klang Valley,

Johor and Sarawak, leveraging

on each regions unique valueproposition

Fix region specific enablers and

cross-cutting enablers to create

world-class operating

environment

4 X 4

RM53bnin GNI

by 2020


6/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market

Electrical & Electronics Value Chain

SubstratesComponents


7/51

Case for change

Malaysia has a strong starting

position

- Shin Etsu: Malaysia is Shin

Etsuslargest wafer production

site in the world

- MEMC: First manufacturing site

in Asia

Target

Relocate 2 silicate substrate &

wafering plant (12,000tons) to

follow the Fabs

Supporting the Growth of Substrate Manufacturers and

Related Industries (EPP4)

Improve investment

environment in Sarawak,which has potential to grow askey substrate manufacturingsite due to availability of lowpower prices (negotiable) andhigh quality silica

Investmentenvironment

Targeted promotion by MIDAto substrate manufacturersand other related industries

Promotion Inprogress

In

progress

RM2.6 billion 3,200 RM3.5 bn

GNI Jobs Investment

Global /regional HQ

R&D, design

Manufacturing(core

components,devices)

Assembly,packaging,

testing

Sales,distribution,

services

Semiconductor value chain


8/51

Case for change Solar PV is the strongest growing

renewable energy with 20%-30%

growth in next 30 years

Malaysia has enough resources to

supply the needed silica for Solar

and Semiconductors as well as toexport

Target

Malaysia to increase domestic

silicon production from 6kt to

115kt by 2020

Establish 1 MNC per annum and

develop 2 domestic silicon playersuntil 2020

Increasing the Number of Silicon Producers (EPP5)

MIDA to promote Sarawak assite for silicon producers

Promotion

MIDA to provide incentives(tax incentive, power rebates)

to pioneering silicon producers


Make Bintulu (nearest town toSamalaju Industrial Park) anattractive livable city

Upgrade Bintulu to an

international airport

Livability

Enhance and align curriculumof Sarawak universities andSarawak Skills Develop Centrewith requirements of silicon

manufacturing

Human capital Inprogress

In

progress

In

progress

In

progress


GNI Jobs Investment


9/51

Tokuyama Malaysia Sarawak

Tokuyama Malaysia Sdn Bhd will build a polycrystalline silicon factory in the

Samalaju Industrial Park, Sarawak. Official Groundbreaking ceremony was

held on 16 February 2011.

Phase 1

Scheduled to begin operations in the 2ndquarter of 2013

The factory will produce polycrystalline silicon for solar cells at an annual

production capacity of 6,200 tons

Expansion plans for an additional 13,800 MT of polycrystalline silicon wereannounced on 12 May 2011

The construction is scheduled to commence in April 2012 and the company

is aims to start operation in January 2015.Phase 2


10/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market


Substrates Components

LED Front-endOperations


11/51

Case for change The LED market is growing at

more than 20% overall and looks

to continue to see such growth

going forward for the next 10-15

years

Malaysia has many downstreamSSL companies, but needs more

upstream players

Target

Bring in at least two substrate

manufacturers and/or epitaxy

companies which have high-value

add profiles Triple LED wafer fabrication

capacity via organic growth for

current players and also through

the attraction of at least one new

global player

Developing LED Front-end Operations (EPP8)

MIDA to continue to attracting LEDcompanies to Malaysia, but withincreasing speed and attentiveness

to the needs of these companies.Taiwan and Singapore are strongcompetitors in this arena.

Promotion

Good plant locations andincentives, such as R&D/training

grants and revolving loans toattract these companies here (e.g.Penang Island areas)


Growth in other parts of the value

chain (e.g. packaging andapplications)

Supply chain Inprogress

In

progress

In

progress


GNI Jobs Investment


12/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers


13/51

Case for change Malaysias internet services are

expensive and slow

Malaysia offers a safe

environment combined with well

developed clusters

Attractive environment will

enable Malaysia to settle 1 cell

and wafer company p.a. starting

2013 to increase production

capacity to 23.3GW by 2020

Target

Increase production capacity by

10x from 2.4GW to 23.3GW in

2020

Growing Cell & Wafer Producers (EPP6)

PSDC and SHRDC to introducecourses/modules, in partnership

with the industry, to train talent

Talent

Promote Northern Corridor forwafer and cell producers and toprovide incentives to pioneering

wafer and cell producers

Promotion

Shared solar test centre to provideproduct qualifications to lowercost of establishing operations inMalaysia and spur innovation

Solar R&D lab and IP house toresearch thin film and crystalline

Innovation

SIRIM to establish national solarproduct standard to ensure safetyand competitiveness ininternational markets

Standards Inprogress

In

progress

In

progress

In

progress


GNI Jobs Investment


14/51

Twincreeks Malaysia Perak

Twincreeks Malaysia Sdn Bhd will introduce an innovative technology,

redesigning how solar cells are designed and manufactured which

allows reduction in materials consumption by 97%. The facility willproduce 100MW solar cells, contributing a significant portion of

output to local solar farm development.

Total investment

Jobs

Location

Date of operation

RM1 billion

1,000

Khantan Industrial Park, Ipoh, Perak

Q2 2012


15/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

IC Design

Cell & Wafer

producers


16/51

Case for change Malaysia has a small base of IC

Design firms today but has

success stories with several large

scale MNC design operations and

local design houses

IC Design strategy aligned with

Malaysias objective of high

income innovation driven

economy

Target

50 more IC design firms (from 15

today), both international as well

as local firms

Developing Integrated Circuit (IC) Design Firms (EPP3)

Silterra, Fab Consortium andMIDA collaboration to identify andencourage IC Design firms to setup

in Malaysia

Promotion

Electronic Design Automation(EDA) pay-per-use centre andshared test and prototyping lab tolower costs and achieve targetedcertification and standards

Sharedservices

Govt enhance support to SkillsDevelopment Centres to train ICDesign talent

Training

Govt incentives to encourage

MNCs to outsource to MalaysianIC design houses

Financing &incentives

IC Design to be included in E&EHub masterplan

Enhance speed and lowerbroadband costs

Infrastructure Inprogress

Inprogress

In

progress

In

progress


GNI Jobs Investment


17/51

Commenced on Jan 10

Completing in June11

26 graduate traineesin Advanced Digital

Design

Commenced on Aug 10

Completing in Jan 12

24 graduate traineesin Advanced Analog

Design

MSc degreeby USM

Centre of Excellence (CoE) for Electrical & Electronics:

IC DesignThe CoE is an educational institution whose main point of focus is in Integrated Circuit (IC) Design. It

provides education through the form of short courses with the objective of aligning the E&E industry

in a competitive and innovative track, in line with EPP3: Development of IC Design Firms. Usains

InfoTech Sdn Bhd (UISB) acts as the Special Purpose Vehicle for this project

Product Development for Potential Spin-off and Nurture Local Incubator

Development of IC Design Outsourcing Program to Support Ecosystem

Promote CoE E&E Initiatives

Development programs


18/51

Failure Analysis Lab

Level 1 FA lab setup Done

10 Companies committed with MoU Signing End June 2011

Phase 1 FA LabShared Services launching End July 2011

Phase 1: Level 1 & 2 (Wafer Fab building)

Phase 2 : Level 2 & 3 (Extension building)

Current status

FESEM

X-RAY

CM

DCAP

MCI

Phase 1: Level 1 & 2 Infrastructure ( June Update)

FIB

SAM


19/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Mature

Tech Fabs

IC Design

Cell & Wafer

producers


20/51

Case for change

Specialty players using mature

tech have been able to achieve

attractive ROA and are

competitive for a wide range of

applications.

Demand for mature technologies

will remain in forseable future as

they are much less capital

intensive than leading-edge

technology

Target Setup five fabs in total by 2020,

doubling the number of fabs in

Malaysia

Executing a Smart Follower Strategy for Mature

Technology Fabrication (EPP1)

RM4.2 bn 6,500 RM10.3 bn

GNI Jobs Investment

First of the 5 fabs was kicked-off byLfoundry Malaysia

Estimated cost: US$300M-400M

Estimated size: 800,000 sq ft

Location: Kulim High Tech Park

Detailed plans

Proposal for govt support to secure

financing syndicated with multiplegovernment agencies (MIDA, etc)

Also seeking private financing

Financing

QT Training Centre to be setup,providing:

A comprehensive skill development

and training course for thesemiconductor industry

Regional equipment refurbishmentcentre

Training centre

In

progress

In

progress

Global / regionalHQ R&D, design

Manufacturing

(corecomponents,devices)

Assembly,packaging, testing

Sales,

distribution,services



21/51

RM

1.9billion

RM12

million

Investment

GNI impact

LFoundry Malaysia Kedah

Piling works in progress Two units of pile rig mobilised to site

NCIA is working with QT Hightech Malaysia in the following:

Set up of QT Training Centre in Kulim High Tech Park to provide acomprehensive skill development and training course for thesemiconductor industry. The centre will also house a regional refurbishcentre to support refurbished equipment

Set up new wafer manufacturing facilities in Kulim High Tech Parkthrough the establishment of LFoundry Malaysia Sdn Bhd which is a

joint venture of QT Hightech Malaysia and LFoundry Gmbh

Official Groundbreaking ceremony was held on 20th February 2011

Construction to commence in mid June and to be completed inDecember 2011.

QT Hightech Malaysia has committed RM100M investment for QTTraining Centre.

QT Hightech Malaysia


22/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar ModuleProducers


23/51

Case for change By 2020 all major Asian

economies will have reached grid

parity causing a significant

demand for PV modules in Asia

Malaysia's attractive ecosystem

for module producers will make

sure that a significant share of the

modules market will be captured

Target

Bring in 2 foreign module

manufacturers and facilitate 5

joint-ventures

Increasing Solar Module Producers (EPP7)

MIDA to promote Johor as a sitefor module production

Promotion

MIDA to provide incentives topioneering module manufacturers

Partnership with Singapore toattract solar investments spanning

both Singapore and Johor


MIDA to attract glass producers toJohor, which is needed for thinfilm solar modules.

Supply chainIn

progress

In

progress

In

progress

Polysiliconfeedstock

Ingot Wafer Cell Module

RM3.2 bn 14,000 RM7.0 bn

GNI Jobs Investment


24/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced

Packaging


25/51

Case for change

Malaysia has high density of

assembly and test players, but

few bumping or wafer level

packaging

Natural next step is to bring inadvanced packaging; domestic

demand exists and Malaysia can

serve as global hub

Target:

Bring three advanced

semiconductor packaging

(bumping, wafer level packaging)

service providers to Malaysia

Developing Assembly and Test Using Advanced Packaging

Technology (EPP2)

Government incentives topioneering groups

Financing &incentives

Targeted promotion by MIDAto existing assembly and testplayers to upgrade toadvanced packaging

Promotion

In

progress

Inprogress


GNI Jobs Investment

Global /regional HQ

R&D, design

Manufacturing(core

components,devices)

Assembly,packaging,

testing

Sales,distribution,

services

Build on strong position in

Assembly and Test and move into

advanced packaging(e.g.

bumping)



26/51

RM

814million

RM

480million

Investment

GNI impact

Infineon Technologies Melaka

Infineon Technologies will expand its production capacity, research &

development and to upgrade its manufacturing facilities in Melaka. Theinvestment will mainly increase the capacity to produce power

semiconductors for energy efficiency applications and will add 350 jobs in

Melaka.


27/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced

PackagingLED Packaging

& Equipment

E di LED P k i d E i (EPP9)


28/51

Case for change Malaysia has a very strong

position in LED packaging among

lighting companies that it can

grow

Malaysia has many downstream

SSL companies, but needs more

upstream players

Target

Grow packaging and application

design landscape both organically

and through inviting remaining

lighting MNCs to set up

operations here -> target is 15%growth annually for the next 10

years

Expanding LED Packaging and Equipment (EPP9)

Local contract manufacturers shouldbe promoted via MITI/MATRADE

overseas missions (including possibletax incentives for foreign companiesto utilise these services)

Promotion

Provide low land cost and incentivesfor lighting MNCs already in Malaysia

to expand capabilities (three of thelargest global players are currentlyhere) and also to attract new ones

Special incentives can be given tolocal companies to expand operationsprior to sector growth in preparation


Infrastructure must be prepared toprovide necessary logistics and spacefor such RM&O companies

InfrastructureIn

progress

In

progress

In

progress

RM1.4 bn 3,700 RM1.8 bn

GNI Jobs Investment


29/51

Philips Lumileds Penang

Philips Lumileds Lighting is investing heavily in setting up a new LED

manufacturing facility in Bayan Lepas, Penang. This state-of-the art

facility will also include a research and development centre and adesign centre, and create 300 skilled jobs.

300

Jobs created


30/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced


& Equipment

Local SSL

Champions

C ti L l S lid St t Li hti (SSL) Ch i (EPP10)


31/51

Case for change SSL companies are part of a larger

lighting market where Malaysia

has the opportunity to become a

global leader

Certification is critical to

attracting global companies,

growing local champions, and

increasing domestic consumption

Target

Grow at least 5 local SSL

companies into global champions

in technology and manufacturing

Develop a certification lab for LEDproducts to help ensure local and

international standards

Creating Local Solid State Lighting (SSL) Champions (EPP10)

RM1.1 bn 2,800 RM0.6 bn

GNI Jobs Investment Establish pro-environmentalregulations and public awareness(e.g. Government buildings tomove to LED lighting by 2020)

Strong IP recognition bygovernment to stop imitationLED products entering Malaysia

Policies

Assist local SSL companies inexpanding abroad via tradedelegations focusing on key SSLrelated areas

Promotion

Develop LED sector talent in keySSL applications areas (e.g.thermals / optics) to complementlower-cost manufacturing labourforce, utilising local universities /institutes

Humancapital

In

progress

In

progress

In

progress


32/51

QAV Technologies Penang

QAV Technologies Sdn Bhd developed a light emitting diode and solid

state lighting certification centre in Penang, the first of its kind outsidethe US to perform testing as per American National Standards Institute(ANSI) standards.

Testing and certification facility for LM79 & LM80 is ready and inoperation since 1st April 2011.

QAV is currently working together with the SSL-LED Cluster, SIRIM,Suruhanjaya Tenaga, JKR and the Lightings Technical Committee of

Malaysia in drafting the Malaysian Standards.

LED-SSL Certification Centre

RM

510

million

6,500

Jobs created

GNI impact

LM80 workstation

SIRIM, JKR and the

Lightings Technical

Committee of Malaysia

visit

LM79 workstation


33/51

National Talent Enhancement ProgrammeIn collaboration with the Human Capital Development Strategic Reform Initiative

Fresh graduates may not necessarily be employable, as theylack technical/ soft skills

Additionally, there may be graduates from non-E&E fields whowish to enter E&E field, or E&E graduates who have venturedoutside of E&E but wish to re-enter

E&E industry requires skilled workforce, thus the need toharness the above-mentioned groups

Rationale

Accelerate thedevelopment ofskilled workforcethrough partnershipwith industry

Objective

TargetTrainees

1. Fresh graduates who are not immediately employable

>2.5 GPA; or

Lack employability skills; and

Graduates in non-E&E related fields

2. Graduates who have newly entered the workforce in a non-E&E related field, but

wish to enter/ re-enter the E&E field

Targetregions

1. Melaka

2. Selangor

3. East Coast Economic Region

4. Iskandar

5. Penang

6. Sarawak

Focused on sectors along the E&E value chain that are green technology related in 4

existing E&E thrust, Semiconductor, Solar, Solid State Lighting, Industrial Electronics

(Electrical home appliances).


34/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced


& Equipment

Local SSL

Champions

Automation

Equipment

Growing Automation Equipment Manufacturing (EPP13)


35/51

Case for change Automation equipments are

equipments that automate processes,

e.g. robotic equipment in

manufacturing

ABB, a global leader in automation

equipment, uses Malaysia as theirRegional HQ. However, ABB only

assembles automation equipment in

Malaysia but does not manufacture

core components

Given ABBs presence, the natural next

step is for Malaysia to build

capabilities as an automation

equipment manufacturing site (not

just an assembly site)

Target

Promote Malaysia as a manufacturing

site to leading automation equipment

manufacturing

Growing Automation Equipment Manufacturing (EPP13)

RM125 mil 1,200 RM0.4 bn

GNI Jobs Investment MIDA to promote

Malaysia as amanufacturing site for

automation equipmentto leading automationequipmentmanufacturers such asABB, Siemens andSchneider

Promotion

Provide pioneerincentive to automationequipmentmanufacturers tomanufacture

automation equipmenthere


In

progress

Inprogress


36/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced


& Equipment

Local SSL

Champions

Automation

EquipmentTest &

Measurement

Building a Test and Measurement Hub (EPP11)


37/51

Case for change Global electronic measurement

market will continue to grow at

~5%

Life sciences & analytical

instruments market expected to

grow, driven by continued

scientific progress

Target

Grow electronic measurement

and bio-analytics business and

build complete test &

measurement ecosystem

Building a Test and Measurement Hub (EPP11)

RM1.4 bn 7,000 RM5.9 bn

GNI Jobs Investment

Grant required incentives toAgilent expeditiously given stiffcompetition from Singapore

Provide grants to local designhouses which serve the test andmeasurement MNCs

Investment

environment

Work with the US Govt to obtain

Government ServicesAgreement (GSA)

Promote the Northern Corridorto leading test and measurementplayers and provide incentives toattract other MNCs to Malaysia

Promotion

Establish shared services centresSharedservices

In

progress

In

progress

In

progress

i l S k P


38/51

Wireless Sensor Network Penang

MoU signing with 3 Commercialization Partners

Terengganu (Inforence), Cameron Highland (MAFC) & Tuaran, Sabah

(Zuma Engineering)

Project committee

What Sensors connected through wireless network,

Monitor the environmental, physical and chemical conditions Emerging technology

Assist decision making process

Today Global: US$ 44.1 b (2009)

Discreet, low processing power,

wired Key Players: Honeywell, TI, Infineon

Malaysian: MEMS Tech (US$ 30 m)

Future Global: US$ 69.2 b (2013)CAGR:

9.3%

Networked, smart, self powered Key Players: Grape Networks,

Sensicast

Key highlights: MIMOS is top

patent originator in micro energy,

Chemical & nano gas sensor

globally (Q310)

El i l & El i V l Ch i


39/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced


& Equipment

Local SSL

Champions

Automation

Equipment Test &

Measurement

Transmission &Distribution

Building Transmission and Distribution Companies (EPP 14)


40/51

Case for change Transmission & distribution

equipment refers to equipment

used to transmit electricity (e.g.

switches, transformers and

cables)

However, most high voltagetransmission equipment

manufacturing still takes place in

Europe due to complexity of the

technology

Target

Build a cluster of transmission anddistribution players in Malaysia

Set up a high voltage power lab

for testing and R&D development

facilities

Building Transmission and Distribution Companies (EPP 14)

RM352 mil 400 RM0.5 bn

GNI Jobs Investment MIDA to market Malaysia as a

manufacturing location toleading transmission and

distribution equipmentmanufacturers such as ABB,Siemens, Areva and Alstom

Promotion

Provide pioneer and OHQ

incentive to transmission anddistribution equipmentmanufacturers


Lab should partner with an intl

test lab such as CESI (Milan) orKEMA so that certification canbe obtained for customeracceptance

Internationaltest lab

In

progress

In

progress

Inprogress

Hi h P T t L b Penan


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High Power Test Lab Penang

High Power Lab can be divided into two labs namely High Voltage Lab and High

Current Lab High Current LabTo test and simulate the test objects by means of high current

generated by current generator or obtained from the grid. The tests are short circuittest and etc.

High Voltage Test LabTo test and simulate the test objects by mean of high voltagegenerated by voltage transformer and voltage generator. The tests are high powerfrequency test, impulse test, switching impulse test and etc.

What is a High Power Lab

El t i l & El t i V l Ch i


42/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-end

Operations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced


& Equipment

Local SSL

Champions

Automation

Equipment Test &

Measurement

Transmission &

Distribution

Wireless

Communication

Wi l C i ti d R di F


43/51

Case for change

RFID is a step change

technology to increase

efficiency, traceability and

security

RFID systems are expected toslowly move towards being used

in modern applications

- ID products

- Logistics / transportation

- E-Halal Track and Trace

Target Grow radio communication

ecosystem and develop RFID

applications in Malaysia

Wireless Communication and Radio Frequency

Identification (RFID) (EPP 12 )

RM1.8 bn 4,400 RM0.7 bn

GNI Jobs Investment

Develop central hub and R&Dclusters

ID products

Promote RFID implementation inlogistics and transportationapplications in Malaysia and AsiaPacific market

Target countries are Thailand,Vietnam, Laos, China, Taiwan andvarious Middle East countries

Logistics /transportation

Develop an open end-to-endNational Halal Food tracktraceability platform for JAKIM

certification consideration

Apply RFID technology in Halalfood processing

E-Halal track &trace

In

progress

In

progress

RFID L i ti & T t ti Penang


44/51

PP

NP

JP

BKT

KTN

KCH

KK

WP

PTP

BTL

PB

.

.

.

.

.

.

.

.

Tracking supply chain end-to-end using RFID

Manufacturer

Warehouse

Customs

Check Point

Air/Sea/Land

Transport

Customs

Check Point

Distribution

WarehouseDeliveryDelivery

Real-time transmission of container

logistics information

Container information

Cargo information

Logistics information

Security information of container

logistics

Time of when opening or closing the

container

RFID: Logistics & Transportation Penang

RFID Transport & Logistics Infrastructure 2010-2012

Implemented

1. Penang Port

2. Port Klang

3. Johor Port

Future plans



45/51

Devices

System

Value

Add

Idea

Generation

BOM

Explosion

Go To

Market



LED Front-endOperations

Cell & Wafer

producers

Mature

Tech Fabs

IC Design

Solar Module

Producers

Advanced


& Equipment

Local SSL

Champions

Automation

Equipment Test &

Measurement

Transmission &

Distribution

Wireless

Communication

Home Electrical

Appliances

Building an Electrical Home Applicants Manufacturing


46/51

Case for change

Malaysia has a fast-growing

electrical home appliances

industry with successful brands

There exists huge potential in the

ASEAN market, especially inIndonesia and Vietnam

Target

Build a consortium company of

several Malaysian electrical home

appliances brands with a strong

international distribution network

Build a manufacturing hub to

provide base for the entire supply

chain

Building an Electrical Home Applicants Manufacturing

Hub and International Distribution Network (EPP15)


GNI Jobs Investment Assistance identifying

manufacturing site whichalready has or can quickly buildcomplete cluster of supplychain firms

Facilitate meetings with privateinvestors


In

progress

Build a consortium company withan international distribution

network

+Sovereign

fund

partners

Other

domestic

companies

ASEAN &

Middle East

Local supply chain

Outsource

Build manufacturing hub toprovide base for the entire

supply chain

Consortium

company

Global EHA

OEMs &

ODMs

Pensonic Holdings Penang


47/51

Pensonic Holdings Penang

Pensonic Holdings Sdn Bhd will spearhead an initiative to establish a

manufacturing hub and international distribution network of electrical

home appliances (EHA) and an international distribution network. This

initiative aims to capture the rising market opportunities in the SoutheastAsian region and the Middle East.

RM

500

million

RM

250

million

Investment

GNI impact



48/51

Devices

System

Value

Add

Idea

Generation

Industrial

Design

BOM

Explosion

Go To

Market


Mature

Tech Fabs

LED Packaging

& Equipment

IC Design


Advanced

Packaging

LED Front-EndOperations

Cell & Wafer

producers

Test &MeasurementSolar Module

Producers Local SSL

Champions

Automation

Equipment

Wireless

Communication

Transmission &

Distribution

Home Electrical

Appliances

Industrial Design


49/51

Industrial Design

Building desirability

Industrial Design seeks to compel a customer to choose a product over another

Hard and soft

Industrial Design can be broadly categorised into "hard" and "soft" aspects

"Hard" aspects is about the Engineeringwhich appeals to the logical consciouspart of customer choice - Features, Technology, Quality,etc

"Soft" aspects are about Emotion, appealing to the unconscious part of customer

choiceColour, Sound, Look, Feel, etc

What is Industrial Design?

Component design &manufacturing

Systems Design &manufacturing

Product Design &manufacturing

EPP10: Develop Local SSLChampions

MDeC is conducting a feasibility study on Industrial Design Centre of Excellence for Electrical &

Electronics.



50/51

Devices

System

Value

Add

Idea

Generation

Cross-cutting enabler: Industrial Park Safety

BOM

Explosion

Go To

Market


Mature

Tech Fabs

LED Packaging

& Equipment

IC Design


Advanced

Packaging

LED Front-EndOperations

Cell & Wafer

producers

Test &MeasurementSolar Module

Producers Local SSL

Champions

Automation

Equipment

Wireless

Communication

Transmission &

Distribution

Home Electrical

Appliances

Industrial

Design

IndustrialDesign

Industrial Park Safety


51/51

Industrial Park Safety

To respond to incidents such as mass casualties, major chemicalaccidents, bio-terror attacks & disastrous contaminations.

HAZMAT(Hazardous materials) vehicle NATO-Standard IncidentRoom, decontamination units and detection systems. Stationedwithin 20min of park.

MDERS(Mass Decontamination and Emergency Response Systems)isdesigned to have the mobility to provide the first line of emergency

treatment, decontamination and emergency supervision. The MDERSat Kulim Hospital is the 1stin SEA.

Objective

First Responder: HAZMAT vehicle Follow Up: MDERS

Increases theappeal of

industrial parks

to potential

investors

nkea electronic electrical

Documents