- Indonesia and Malaysia plan joint development of next-generation semiconductors to strengthen regional technology ecosystems globally.
- Partnership focuses on chip design, advanced manufacturing, talent development, and resilient semiconductor supply chains networks.
- Collaboration supports industrial transformation, innovation-led growth, and Southeast Asia’s competitiveness in global semiconductor markets industry.
Indonesia aims to strengthen its partnership with Malaysia in order to fast-track development of advanced semiconductor technologies through their joint efforts to create next-generation chip technologies which will be used in modern electronic devices and mobile phones and automotive systems and devices that connect to the Internet of Things.
Indonesian officials emphasized at the 2026 Indonesia Economic Summit which took place in Jakarta that regional cooperation presents a strategic opportunity because Malaysia has developed its semiconductor ecosystem while new-generation chip markets need partnerships to grow.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Malaysia possesses essential semiconductor manufacturing and design expertise which makes the country into a valuable partner for Indonesia's technological development efforts.
He showed that joint research projects would lead to faster research development processes while developing technical skills and human resources across all industrial sectors.
The initiative forms part of Indonesia’s broader national industrialisation strategy which enjoys strong governmental support and aims to create a competitive semiconductor ecosystem that matches global industry standards.
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Indonesia uses a three-phase strategy to develop its startup ecosystem and transform its industrial sector while executing its chip design programs for computing and digital technologies that focus on digital automotive and electronics industries.
The regional partnerships which enable countries to work together are vital for maintaining their competitive edge in the global semiconductor industry which now depends on intricate supply networks and swift technological advancements.
Indonesia wants the partnership which will increase its knowledge base. The partnership will enable Indonesia to create domestic value through semiconductor production by using its upstream resources which include manufacturing materials such as silica sand and glass.
The two countries plan to establish a sustainable semiconductor industry across Southeast Asia through the development of Indonesia's resource base and technical workforce together with Malaysia's advanced technological capabilities.