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Nvidia and EV Boom: Malaysia's Emerging Hub for AI and Chip Manufacturing

Hey there! Have you heard about Malaysia's rise in the tech world lately? It's pretty exciting! Malaysia is fast becoming a hotbed for chip manufacturing and AI development, attracting major players like Nvidia and Kinsus. Let me break it down for you.

Edward Sun, EvGuru tech correspondents

Wednesday, June 5, 2024 (GMT+8)

Time in Malaysia

Nvidia EV Boom Malaysia Chip

Nvidia Deepens Partnership with BYD

Nvidia, a titan in the chip-making industry, is deepening its ties with BYD, a leading Chinese EV manufacturer. They're partnering up on AI training, auto manufacturing, and in-car computing. Despite some restrictions on selling their top-tier chips to China, Nvidia is pushing forward with innovative solutions. They're providing BYD with their latest Drive Thor chip platform, designed specifically for AI and autonomous driving. This is powered by Nvidia's cutting-edge AI chipset, Blackwell, perfect for handling large language models and generative AI tasks. Exciting, right?

Beyond Cars: Expanding AI Integration

Beyond cars, this partnership stretches into broader workflows. BYD will leverage Nvidia's technology to develop intelligent robots for their factories and enhance car buyers' shopping experiences using Nvidia's Omniverse real-time 3D graphics platform. Other Chinese automakers, like Xpeng, Hyper, and Li Auto, are also adopting Drive Thor for their next-gen EV fleets. We're looking at the first cars with this tech hitting the roads in 2025! (More info about EV Charge at EvGuru)

Kinsus Sets Up Shop in Penang

Meanwhile, in Penang, Kinsus Interconnect Technology is setting up a pilot plant, marking a significant step for Malaysia's tech scene. Kinsus, part of Pegatron (yes, the iPhone assembler), has rented a facility to trial substrate production—crucial materials on which chips are built. If all goes well, this could lead to a more substantial investment, making Malaysia a new hub for chip packaging and testing. The initial production will focus on automotive applications, consumer electronics, and memory chips, with automotive being the top priority. Imagine Malaysia supplying key markets across Southeast Asia!

Growing Tech Ecosystem in Malaysia

Malaysia's growing capacity for chip packaging and testing is already attracting big names like Intel and Infineon. Intel alone is pumping in $7 billion to boost its operations in the country, aiming to make it their primary production base in Asia for advanced 3D chip packaging. This influx is likely to draw even more substrate and equipment makers to the region, creating a vibrant tech ecosystem.

Growing Tech Ecosystem in Malaysia

Strategic Shifts in Global Supply Chains

This move by Kinsus isn't just a strategic play but a symbol of the broader shift in the global tech supply chain. With the ongoing US-China tech tensions, companies are looking to diversify their manufacturing bases. Malaysia is emerging as a strong contender, alongside other Southeast Asian nations like Thailand and Vietnam. This diversification trend, known as 'China plus one,' is helping companies mitigate risks and tap into new markets.

A Thrilling Future for Malaysia

Nvidia's strategic partnerships and Kinsus's expansion are turning Malaysia into a significant player in the global tech and automotive industries. It's a thrilling time for the country, poised to become a crucial hub for both chip manufacturing and AI development. Who knows? This might just be the beginning of a tech renaissance in Malaysia. Stay tuned for more updates on this exciting journey!

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