You are required to do a research paper on the viability of the upstream (wafer

Question

You are required to do a research paper on the viability of the upstream (wafer fabrication) and downstream (discrete components and chip packaging) semiconductor industries in Malaysia considering that Malaysia should be emphasizing more on design of chips and thus IP generation come 2020. In doing so, u are required to consider the socio-economic aspects as these industries have greater potential in generating employment than design centers however it do not help in the creation IP. Write in font 12, new times roman and 1000 words Examples of Upstream Industry-On Semicondctor1 Silicon, Silterra, Fujitsu, Intel, Infineon Examples of Downstream Industry- Toshiba, Vikay, Shinetsu, ASE, Carsem, Unisem

Explanation / Answer

In a semiconductor fabrication plant, integrated circuits (ICs) or microchips, are made. These plants are either operated by Integrated Device Manufacturers (IDMs) or through tie up between fabless companies and Pure Play foundries. IDMs design and manufacture ICs in their own interest. Fabless comapnies can be called as design only firms and Pure Play foundries only manufacture designs obatined from fabless companies. Silterra , ON Semiconductor , Osram Opto Semiconductors are main companies in the field of semiconductor in Malaysia. Allof them are Integrated Device Manufacturers having design centres, manufacturing units and sales across the world.

A model fab manufactring unit in Malasyia consist of Fabrication and Process Support Building ( material storage, testing, and specialized support functions; and fabrication ), Central Utility Building ( supplies the mechanical and electrical energy to the entire physical plan), Chemical and Waste Treatment Building ( process-related chemicals and waste treatment areas supporting the fabrication process), Office (administration, engineering, human resources, security, employee facilities, conference, communications, and financial support activities). Thus the employment generation is huge. Also it cause maximum use of local content of building materials, systems, and labor, and thus project contribute a strong legacy back to Malaysia.

At the same time, Emphasising on design of chips in Malaysia will provide to an upper hand in semiconductor value chain. Any manufacturer have to depend on proper design. This can lead to establishent of more manufacturing centre. The royality can be claimed for using the design and a huge amount flows continously as long as product exist. On the other hand, employment generation is less in design only centres. It is mostly driven by highly experienced engineering talents across the world.

The downstream industries comes to Malaysia on its own provied that the design and manufacturing centres are well established. Obviously, it will help in cost reduction and efficient manufacturing.

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