Malaysia and South Korea open talks on AI and semiconductor collaboration
Malaysia opened formal discussions with South Korea to expand collaboration in artificial intelligence and semiconductors during AI EXPO KOREA 2026 in Seoul.
Source: Malaysian Investment Development Authority · August 18, 2026 at 8:35 AM · AI-assisted report
Single-source
SEOUL, 18 AUGUST 2026 —
Malaysia opened formal discussions with South Korea to expand collaboration in artificial intelligence and semiconductors during AI EXPO KOREA 2026 in Seoul.
Market Impact
Malaysian Investment Development Authority director in Seoul, Mr Redzuan Abd Rahman, told delegates on 6 May 2026 that Malaysia’s New Industrial Master Plan 2030 and National Semiconductor Strategy position the country as a regional hub for AI and chip-related industries.
Korea has invested RM49.5 billion in Malaysia across 400 projects as of 2025, supporting nearly 50,000 jobs in chemicals, electronics and transport equipment, according to figures released by MIDA.
Under NIMP 2030, Malaysia targets digitalisation, industrial upgrading and AI-driven growth, with priority areas including cloud computing, robotics and additive manufacturing.
The government said Malaysia ranked 38th globally in the Oxford Insights Government AI Readiness Index 2025, reflecting steady progress toward its ambition to become a leading AI powerhouse by 2030.
Malaysia’s semiconductor base, long anchored in assembly, testing and advanced packaging, now forms the backbone for its broader AI ambitions, MIDA said.
Mr Redzuan highlighted opportunities for Korean companies in AI-driven manufacturing, semiconductor supply chains, IC design and advanced packaging technologies.
Korea brings global leadership in semiconductor manufacturing and innovation, while Malaysia offers a strategic Southeast Asia gateway, competitive production costs and expanding digital infrastructure, he said.
“Both countries’ complementary strengths create opportunities across the value chain,” Mr Redzuan told the seminar co-organised by the Korea Artificial Intelligence Association and Seoul MESSE Co.
Malaysia Digital 2030 and the AI Technology Action Plan 2026–2030 provide policy and fiscal support to accelerate AI adoption and digital governance reforms.
MIDA Seoul will continue to facilitate partnerships that strengthen innovation, supply chain resilience and sustainable growth in the regional technology ecosystem.
Related: Intel