Since the 1960’s, semiconductor manufacturers in Malaysia have contributed to the production of high-quality semiconductor chips. Malaysian semiconductor manufacturers have supplied some of the world’s largest MNCs from around the world (Germany, US, etc.), including Infineon Technologies, X-Fab and ON Semiconductor. Here is a brief analysis of the Semi Condcutor Industry in Malaysia and it's impact on investors and start ups.

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The Semi-Conductor Industry
A SMALL GUIDE FOR INVESTORS AND START-UPS – SEMICONDUCTOR
MANUFACTURERS IN MALAYSIA.
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“Just as electricity had merged
into the walls of our homes,
invisible yet always present,
so will computers and its semiconductors
one day become as thin
and inexpensive as paper – so cheap,
in fact, that you could crumple it
and toss it in the bin.”
- Michio Kaku
World-renowned physicist
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• Intense competition characterizes the industry, with
hundreds of billions of dollars being pumped into R&D
alone to make chips smaller, faster and more affordable.
• To meet demand, semiconductor companies outsource a
portion of their manufacturing needs to external
companies
• Since the 1960’s, semiconductor manufacturers in
Malaysia play a significant role in the production of high-
quality semiconductor chips and supply some of the
world’s largest MNCs from around the world (Germany,
US, etc.), including Infineon Technologies, X-Fab and ON
Semiconductor.
.
An Overview of the Semi Conductor
Industry in Malaysia.
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• In 2004, the gross output of the semiconductor industry
totalled RM183.1 billion, with the total export value of
finished electrical and electronic products at RM241.5 billion.
• In 2015, exports grew to RM5.35 billion, largely driven by an
increase in demand for photosensitive semiconductors for
solar-powered products (MITI Report 2015,
Source :
http://www.miti.gov.my/miti/resources/MITI_Report_2015-
5.pdf)..
An Overview of the Semi Conductor
Industry in Malaysia.
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MICROPROCESSORS
MEMORYSYSTEM ON A CHIP
(SOC)
TYPES OF SEMI CONDUCTOR
& THEIR PLACE IN THE MARKET TODAY
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1. Microprocessors
• Microprocessors, or Central Processing
Unit (CPU), are the core logic centres that
let computers process instructions.
• Robust marketing and understanding
of economies of scale provided Intel the
funds it needed to develop its R&D and
manufacturing capabilities.
• Today, Intel’s X86 processors dominate the
microprocessor market, with virtually every
home computer housing an X86.
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2. System on a Chip (SOC).
• “System on a Chip”, or SOC, are integrated circuits
that combine the functionality of different systems
into one product, typically the microprocessor
(CPU), graphic processing unit (GPU) and Wi-Fi
module.
• Low power consumption means that mobile devices
such as smartphones benefit the most from SOCs
• Regarded as the only semiconductor-related
industry with a lower market saturation
• The SOC sector is a hotspot for new players, like
SOHO start-ups, looking to take a short at the
semiconductor industry.
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3. Memory
• Fast and reliable, memory chips store and
transmit information back and forth the central
processor, serving as “short-term memory” as
opposed to the “long-term memory” provided by
hard disks and flash storage.
• Brutal competition means that only super-
entities like Samsung, Toshiba and Kingston are
able to compete on a level playing field leaving
little room for newcomers looking for a slice of
the pie.
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MARKET ANALYSIS
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Years it takes to design a chip
Because it takes years to design chips, build the
fabricators and earn back enough in sales simply cover the
costs of development, pinpointing the reasons that made
or broke the market is complicated.
Careful planning and understanding of consumers
This is what will give a semiconductor company the best
run for their money
1. Subject to Cyclical Economy.
Despite understanding how cyclical economies work, trying to
predict when the semiconductor industry will peak and when it will
fall is not an easy task.
Factors to be considered:
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2. Market Potential and Entry for Start-Ups.
Overall, the semiconductor industry is and will continue to be
dominated by a small group but highly established big players.
With billions of dollars required to set up fabrication plant and
compete in R&D, breaking into the market will only be possible
with significant backing and resources.
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Amount of Risk
Chip designers and manufacturers take big risks all the
time. It takes years to design a chip, longer before they hit
the fab plants, and even longer before the outcome of
sales becomes apparent
Appearance and success of “fabless” chip makers
This is another point of entry for newcomers. Leveraging
on the manufacturing capabilities of existing fab plants,
“fabless” chip makers focus solely on chip design and
sales while outsourcing/licensing their designs to
established fabrication plants.
2. Market Potential and Entry for Start-Ups.
Factors to be considered:
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The SoC (System on a Chip) market
Driven by the demand for higher bandwidths and speeds,
this segment of the industry needs engineering talents to
come up with creative solutions who will be able to
contribute without the resources of a multi-billion dollar
organization.
2. Market Potential and Entry for Start-Ups.
Factors to be considered:

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Cost cutting measures
To cut costs and stay competitive, large chip designers
and even fabricators outsource their production
predominantly to Asia to take advantage of lower labour
costs, land and taxes, before being sent back home for
final inspection.
3. Outsourcing to Semiconductor Manufacturers
in Malaysia.
.
Factors to be considered:
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Start-ups and investors forge partnership
This includes semiconductor manufacturers in
Malaysia and Singapore, and represents are great
opportunity for start-ups and investors to form
partnerships and gain a foothold in the industry.
3. Outsourcing to Semiconductor Manufacturers
in Malaysia.
.
Factors to be considered:
Outsourcing has become a trend
More recently, chip and semiconductor manufacturers
have also started to outsource testing to semiconductor
test equipment companies in Malaysia..
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UPE Alliance Group
UPE Alliance Group is an ISO 9001:2008 & 14001:2004 certified company, we specialise
in providing a full range of services in Industrial Automation, System Engineering, Project
Management, Design and Fabricate of Jig & Fixture and other services including CNC
Milling, CNC Turning, Wire Cut, Grinding, Conventional Milling, Turning to various industries
and MNC companies in Malaysia as well as across Asia.
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Chairman’s Message
“We have proven ourselves and have been recognized as a quality supplier. We will continue to dedicate ourselves to the
pursuit of new global growth opportunities and preferred Industrial Company for Employees, Customer and Business
Partners.”
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01. Our SLOGAN
We adopted the
slogan “Par…Excellence” as it reflects
our commitment to excel in the Precision
Engineering
02. Our BELIEF
We continuously stress upon the
important of “Change -for the better” by
keeping abreast with advance
technological knowledge and constantly
upgrading our Services and Products.
03. Our TOP PRIORITY
In order to stay ahead and competitive,
we believe that commitment
to “Customers’ requirement is our top
priority “
About us

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• To become an Engineering Hub that provides premium services for
all customers that requires our expertise through continuous
quality improvements and process in a cost effective and timely
manner.
• To undergo further global expansion from Malaysia into Asia, Europe,
United States as well as other strategic regions throughout the
world.
.
Our Mission
What makes us tick.
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• To be the world’s preeminent leader in the provision of Automation
Systems, precision machining components, Engineering and
Complete Turnkey Solutions.
.
Our Vision
What makes us tick.
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We from UPE Alliance Group are committed to
• Improving and Enhancing Customer Satisfaction
• Continuous Improvement and Excellence
• Ensuring Superior Quality and Reliability
Our Quality Policy
What makes us tick.
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PRODUCTS AND SERVICES
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AUTOMATION
We offer a complete range of industrial automation
design services and build custom-tailored machines
that best fits your precise specifications. We
provide turnkey automation solutions for various
industries.
Type of Products Design & fabricated:
• Automatic drilling machine.
• Automatic Chamfering machine.
• Face Milling machine.
• HDD Drill & Tap machine.
• Automatic Pin insert machine.
• Vision inspection machine.
• Etc.(based on customer request)
.
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OIL & GAS
We specialised in providing CNC precision machined
components and complete turnkey solution to the oil and gas
industry. Our facilities, CNC machinery and teams who are
experienced in a varienty of materials, such as exotic and
super alloys, ferrous and non-ferrous metals, engineering
plastic will bring about higher productivity, efficiency and
output by reducing downtime.
Type of Components we supply as Turnkey & Machine
Complete such as based on customer drawing:
• Lock Mandrels.
• bore.
• Piston.
• Adapter.
• Fishing Neck.
• Mandrels.
• Reduce adapter.
• X-Over.
• Sub-top / sub-bottom.
• Seal.
• Bladder.
• Closing Sleeve.
• Coupling.
• Body Joint.
• Landing Nipple.
• Piston Mandrel.
• Shear Sleeve.
• Pup Joint & Etc.UPE ALLIANCE GROUP

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JIG AND FIXTURE
With the right jig and fixture design, we are able to
help our valued customers save money as well as
time in manufacturing operations. We custom design
and build jigs and fixtures according to your exacting
requirements.
Type of Products Design & fabricated
• Assembly Fixture.
• Tester Fixture.
• QC Checking Machine.
• Cutting Punches & Dies.
• Test Plug & Caps.
• Base holder.
• Dimension checking jigs.
• BGA Socket Fabrication.
• Drifts.
• Milling & Turning Fixture.
• (based on customer request).
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FINISHED PRODUCTS
The machined components supplied by us are
mainly used by the customer for assemble of
finished products.
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DESIGN
MEASURING
EQUIPMENT
MACHINEIN - HOUSE
CAPABILITIES
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UPE ALLIANCE Group
No 1, Jalan Desa Tropika 2/2, Taman Perindustrian Tropika,
81800 Ulu Tiram, Johor Bahru, Malaysia.
+607-863 0000
sales@upealliancegroup.com