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Microelectronics industry in Malaysia : Only assembly and packaging ? No Chip Design?

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In Germany I have noticed that many German companies are using IC packages made
by Malaysian companies. There are also companies doing assembly activities.
I have tried to find some IC design companies there. So far, a few companies are available.
But, none of them are doing cutting-edge chip design.

This has made me surprised. What is wrong in Malaysia ? They have good infrastructure and political stability. The government is also supportive towards high tech industry.

Still , no serious chip design activities there ? Is it lack of human capital ? Or brain drain ?

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