Application-Specific Integrated Circuit in Malaysia Trends and Forecast
The future of the application-specific integrated circuit market in Malaysia looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets. The global application-specific integrated circuit market is expected to reach an estimated $21.8 billion by 2031 with a CAGR of 5.7% from 2025 to 2031. The application-specific integrated circuit market in Malaysia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
• Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to its lower complexity and broad range of applications.
• Within the application category, consumer electronics is expected to witness the highest growth due to the increasing use of application-specific integrated circuits in various gadgets, such as smartphones, tablets, and laptops.
Emerging Trends in the Application-Specific Integrated Circuit Market in Malaysia
In Malaysia, the application-specific integrated circuit (ASIC) market is evolving quickly, fueled by new technologies and emerging opportunities in various sectors of the economy. The development of modern electronic systems relies heavily on these uniquely designed chips for increased efficiency and effectiveness. Malaysia’s semiconductor industry is in a transformative phase, and several noteworthy changes in the market landscape are evident. These changes are aiding the development of telecommunications, automotive, and electronics-based ASIC applications.
• AI and ML System Integration: Increased adoption of artificial intelligence (AI) and machine learning (ML) has created a strong need for energy-efficient and high-speed data processing application-specific integrated circuits (ASICs). As AI adoption increases across various industries, ASICs will soon be required for the real-time execution of AI algorithms. Malaysia’s semiconductor industry must respond by producing automation chips for AI systems that can conduct forecasting and advanced analytics in healthcare, finance, and manufacturing.
• Surge of 5G Technology: The adoption of 5G has caused a surge in demand for ASICs specializing in communication technologies. These chips are key components in the expansion of infrastructure that enables data transmission at high speeds and with low latency. This trend is also evident in Malaysia as the telecommunications industry begins preparing for 5G. Malaysia’s semiconductor industry is poised to benefit from the country’s investments in next-generation connectivity, as ASICs optimized for 5G applications are critical for base stations, mobile devices, and data centers.
• Electric Vehicles and Automotive Electronics: As Malaysia moves toward sustainable mobility, the automotive industry is shifting its focus to electric vehicles (EVs) and self-driving technology. ASICs are critical for powering systems in electric vehicles, including battery management, energy optimization, and driver assistance. Automotive ASICs are in high demand as Malaysia’s chip manufacturers shift their focus to producing specialized chips tailored to EVs and self-driving cars, ensuring they remain competitive globally.
• IoT Expansion: The Internet of Things (IoT) is one of the key pillars of Malaysia’s digital transformation strategy. ASICs tailored for smart home devices, wearables, and industrial sensors are required to function properly. With Malaysia’s recent smart city initiatives and IoT network expansion, there is a growing need for reliable, compact, and energy-efficient ASICs. This trend highlights how crucial it is to integrate these chips into devices to foster innovation and connectivity across industries.
• Focus on Energy Efficiency and Sustainability: Energy-efficient ASICs are in high demand due to a renewed global focus on sustainability. Industries worldwide, including Malaysian semiconductor companies, are developing more powerful, lower-powered, and energy-efficient high-performance chips. From data centers to automotive industries, energy-efficient ASICs are essential. With increasing pressure to achieve sustainable objectives, the focus in Malaysia’s ASIC market is shifting toward developing and implementing innovative solutions that reduce energy consumption without compromising performance.
The expansion of 5G, the rise of electric vehicles, and the integration of IoT in Malaysia are not the only emerging trends in the country’s semiconductor market. The ASIC market in Malaysia is also experiencing shifts and adapting to the increased demand for more advanced, efficient, and environmentally friendly technologies. With a focus on innovation, Malaysia has positioned itself as a key player in the global ASIC market.
Recent Developments in the Application-Specific Integrated Circuit Market in Malaysia
In Malaysia, industry activity in the application-specific integrated circuits (ASIC) market has advanced significantly in recent years. Malaysia is incorporating AI, 5G, and other sustainable technologies into its semiconductor industry by designing and manufacturing custom ASICs. These efforts are aimed at capturing a significant market share in the country’s growing semiconductor market.
• AI-Driven ASICs Development: Malaysia is experiencing growth in the design of ASICs tailored for AI. The country’s semiconductor manufacturers are allocating resources to developing sophisticated, algorithm-capable ASICs due to the increasing reliance of industries on machine learning and data processing. These specialized ASICs are being utilized in robotics, healthcare, and data centers. Malaysia is meeting the rising demand for AI-based technologies while enhancing efficiency by optimizing power output and speed. This positions Malaysia as a leader in the ASIC market.
• Growth in 5G Infrastructure: Malaysia is one of the leading countries in adopting 5G technology, creating demand for specialized ASICs that enable high-speed and low-latency communication. To support next-generation technologies, local telecommunication companies are addressing infrastructure needs. Building the required bandwidth for processing high-speed data in 5G applications makes ASICs essential. The rapid expansion of 5G in Malaysia is driving ASIC development and opening opportunities for local companies to produce custom chips for mobile devices, base stations, and data centers.
• Development of Automotive ASICs for Electric and Autonomous Vehicles: Electric vehicles (EVs) and autonomous driving technologies are gaining momentum in Malaysia, prompting the design of dedicated automotive ASICs. These chips are crucial for systems such as battery management, energy control, and autonomous driving sensors. Malaysian automotive and semiconductor companies are focusing on designing high-performance ASICs that meet the needs of EVs. The shift toward electric and autonomous vehicles is transforming Malaysia’s automotive and semiconductor industries, creating new growth opportunities and establishing the country as a global automotive semiconductor hub.
• Focus on IoT and Smart Cities: Malaysia is at the forefront of developing IoT technologies to support smart city initiatives and promote cross-industry connectivity. ASICs designed for IoT applications are essential for smart devices such as smart home systems, industrial sensors, and wearable devices. As Malaysia accelerates its IoT and smart city projects, the demand for energy-efficient, reliable ASICs continues to rise. This trend is driving activity in the local semiconductor sector as manufacturers work to design ASICs for a wide range of IoT applications.
• Sustainability in Semiconductor Manufacturing: Malaysia’s semiconductor industry is shifting toward producing energy-efficient ASICs in response to the global emphasis on sustainability. Manufacturers are creating chips that consume less energy while maintaining high performance. This trend is most prominent in industries like data centers, automotive, and IoT, where energy-efficient practices are becoming standard. Malaysia’s semiconductor companies are adopting sustainable practices and technologies to meet the demand for eco-friendly ASICs, contributing to global efforts to reduce carbon emissions and conserve energy.
The recent advancements in Malaysia’s ASIC market highlight the country’s focus on technology and sustainability. From AI chips to electric vehicles, 5G technology, IoT, and energy-saving appliances, Malaysia is emerging as a significant player in the global semiconductor market. As new markets develop, it is clear that Malaysia’s semiconductor industry will be at the forefront of changes, providing innovative solutions for evolving technologies and industries.
Strategic Growth Opportunities for Application-Specific Integrated Circuit Market in Malaysia
The application-specific integrated circuit (ASIC) market in Malaysia is expected to grow rapidly due to developments in telecommunications, automotive, healthcare, and consumer electronics. Given Malaysia’s strategic emerging role in semiconductor manufacturing, opportunities are arising in many areas. Additionally, ASICs are increasingly becoming a key component in enhancing performance, energy efficiency, and functionality in various forms of technology. Malaysia’s strategic focus on meeting the specific requirements of industries is enabling growth in its semiconductor market.
• Telecommunications and 5G: The continued rollout of 5G in Malaysia presents a favorable growth opportunity for local ASIC designers and manufacturers. There is a strong demand for ASICs tailored to telecommunications for base stations, mobile devices, and data centers. With Malaysia’s growing 5G network, local manufacturers can produce the specific ASICs needed for the local market. This expansion also positions Malaysia as a leading player in global 5G semiconductor manufacturing.
• Electric Vehicles (EVs) and Automotive Electronics: Malaysia is progressing toward electric vehicles (EVs) and autonomous vehicle technologies. In EVs, ASICs are crucial for managing batteries, optimizing energy usage, and operating sensors for self-driving cars. As local manufacturers shift to producing EVs, ASIC manufacturers can pivot to designing specialized chips for these technologies. This will position Malaysia as a key semiconductor manufacturer, contributing to both the local economy and sustainable mobility, while also positioning Malaysia in the global EV semiconductor race.
• IoT and Smart Cities: The Internet of Things (IoT) industry in Malaysia is growing rapidly due to smart city initiatives. There is increasing demand for IoT devices, including smart homes, industrial wearable sensors, and application-specific integrated circuits (ASICs) for these devices. As Malaysia accelerates the development of connected infrastructure, the need for innovative, power-efficient ASICs will grow. Semiconductor manufacturers have significant potential to develop smart IoT devices aimed at transforming industries with energy-efficient and reliable ASICs, which could reshape the landscape of digital smart cities.
• Artificial Intelligence (AI) and Machine Learning (ML): As AI and ML technologies become integral to business operations, new opportunities for high-performance, energy-efficient ASICs are emerging to process large datasets. AI and ML-specific ASICs are critical for accelerating machine learning models and data center operations. With the rapid advancement of AI in Malaysia’s semiconductor industry, manufacturers now have the opportunity to specialize in ASIC design for the healthcare, finance, and manufacturing sectors, supporting near real-time decision-making and automation.
• Energy Efficiency and Sustainability: The global shift towards sustainability has increased demand for energy-efficient ASICs. Malaysia’s automotive, IoT, and data center industries are increasingly adopting low-power, high-performance chips to meet sustainability goals. Manufacturers can capitalize on the opportunity to design energy-efficient ASICs that help these industries optimize performance while reducing energy consumption. This focus on sustainability will boost Malaysia’s green economy and expand the country’s presence in the global semiconductor market, which is actively seeking eco-friendly solutions.
The telecommunications, automotive, IoT, AI, and ESG sustainability sectors are essential for the growth of the application-specific integrated circuits market in Malaysia. Malaysia’s strategic response to these trends will attract investment and innovation, enabling it to emerge as a significant contributor to the global semiconductor value chain.
Application-Specific Integrated Circuit Market in Malaysia Driver and Challenges
The ASIC (application-specific integrated circuit) market in Malaysia faces both challenges and drivers driven by economic, technological, and regulatory factors. Companies operating in this industry need to understand these dynamics to streamline their policies. Certain factors, whether economic or technological, create growth opportunities, while others pose constraints. The challenge for stakeholders in the semiconductor industry is how to strike the right balance.
The factors responsible for driving the application-specific integrated circuit market in Malaysia include:
• Innovations in 5G and AI Integration: Further developments in 5G networks and artificial intelligence (AI) are significant drivers for the growth of the ASIC market in Malaysia. As 5G network coverage expands and various sectors incorporate AI into their functions, the need for high-performance ASICs increases. ASICs enable efficient data processing, low latency, and high energy efficiency, supporting the success of these technologies. Malaysia’s semiconductor industry stands to benefit from this trend by designing specialized ASICs for 5G and AI, boosting productivity and fostering investment in the country.
• Strong Government Policies and Support for the Semiconductor Industry: The Malaysian government has been pursuing policies that support the semiconductor industry through technology development and innovation. These policies include grants for R&D activities, favorable tax policies for semiconductor plant construction, and capital expenditures on semiconductor facilities. These measures facilitate the operations of local firms in the ASIC market. Foreign direct investment inflows are also encouraged by Malaysia’s strong position in the global semiconductor industry due to government support.
• Electric Vehicles (EVs) and Green Technologies Adoption: The increasing adoption of electric vehicles (EVs) and renewable energy technologies is driving the growth of the ASIC market in Malaysia. EVs enable semiconductor companies to design specialized ASICs for battery management systems, energy optimization, and autonomous driving. As the preference for sustainable mobility options grows, Malaysian semiconductor companies can design automotive-specific ASICs, which will help the local industry and make Malaysia a leader in automotive semiconductor manufacturing.
• Growth of IoT and Smart City Developments: The growth of IoT technologies and smart city projects increases the demand for specialized ASICs. These chips are critical components in enabling IoT devices like sensors, wearables, and smart home systems. Malaysia’s national initiative to develop smart cities, combined with greater inter-industry collaboration, will significantly boost demand for reliable, energy-efficient ASICs. The semiconductor industry can leverage these opportunities to address the digital transformation needs of various sectors.
• Sustainability and Energy Efficiency Demands: The global trend toward greater sustainability demands energy-efficient solutions. This need is particularly pronounced for low-power, high-performance ASICs. In Malaysia, industries from automotive to IoT to data centers are focusing on energy-efficient ASICs to achieve their ESG goals. As local manufacturers shift towards developing energy-efficient products, this driver enhances Malaysia’s competitiveness in the global semiconductor market, increases energy efficiency within the country, and supports its green economy.
Challenges in the application-specific integrated circuit market in Malaysia are:
• Global Semiconductor Supply Chain Disruptions: The Malaysian semiconductor industry faces challenges related to international supply chain disruptions. The COVID-19 pandemic and geopolitical conflicts have impacted the availability of raw materials and components, leading to shortages and rising prices. These issues have increased production costs and caused delays, hindering Malaysian manufacturers’ ability to meet demand for ASICs. These disruptions pose a critical risk to achieving sustainable growth in the Malaysian ASIC market.
• Rising Global Competition: Malaysia’s semiconductor industry faces intense competition from companies in Taiwan, South Korea, and China. These countries have well-developed ecosystems for semiconductor manufacturing, skilled labor, and production facilities. To remain competitive globally, Malaysian companies must focus on innovation, cost-saving measures, and strategic partnerships. Without observing global trends and advancing technological capabilities, many manufacturers in Malaysia may experience a decline in market share and growth.
• Trade Regulations and Barriers: Trade regulations and policies could hinder the ASIC market in Malaysia. For example, tariffs, export restrictions, and international trade relations can affect the movement of goods and increase production costs. To remain competitive, Malaysian semiconductor firms must overcome these barriers by adapting to regulatory changes and strengthening their supply chains. Being able to withstand changing trade policies is essential to sustaining the market’s growth.
The key drivers of technological advancements, government support, and the growth of industries such as EVs, IoT, and sustainability present tremendous opportunities for the ASIC market in Malaysia. However, challenges such as global competition, supply chain disruptions, and trade regulations need to be addressed. By leveraging its strengths and overcoming these obstacles, Malaysia’s semiconductor industry can strengthen its position in the global ASIC market.
List of Application-Specific Integrated Circuit Market in Malaysia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, application-specific integrated circuit companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the application-specific integrated circuit companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Application-Specific Integrated Circuit Market in Malaysia by Segment
The study includes a forecast for the application-specific integrated circuit market in Malaysia by product type and application.
Application-Specific Integrated Circuit Market in Malaysia by Product Type [Analysis by Value from 2019 to 2031]:
• Full Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC
Application-Specific Integrated Circuit Market in Malaysia by Application [Analysis by Value from 2019 to 2031]:
• Telecommunication
• Industrial
• Automotive
• Consumer Electronics
• Others
Features of the Application-Specific Integrated Circuit Market in Malaysia
Market Size Estimates: Application-specific integrated circuit in Malaysia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Application-specific integrated circuit in Malaysia market size by product type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different product type and application for the application-specific integrated circuit in Malaysia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the application-specific integrated circuit in Malaysia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the application-specific integrated circuit market in Malaysia?
Answer: The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
Q2. What are the major segments for application-specific integrated circuit market in Malaysia?
Answer: The future of the application-specific integrated circuit market in Malaysia looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets.
Q3. Which application-specific integrated circuit market segment in Malaysia will be the largest in future?
Answer: Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to it’s lower complexity and broad range of applications.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the application-specific integrated circuit market in Malaysia by product type (full custom ASIC, semi-custom ASIC, and programmable ASIC), and application (telecommunication, industrial, automotive, consumer electronics, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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