Supply Chain

Bosch, Malaysia, and the global chip crisis

August 4, 2023
Image by rawpixel.com on Freepik

Feeling chippy? It might be because the world is running out of chips. It’s a silent and ongoing crisis that has affected our car, desktop, credit card, and video-game production!

  • What happened? An unlucky mix of the pandemic, geopolitical tensions, facility breakdowns, and more. 
  • The result.  Price increases, long waiting times for supply, and reselling. 

🚘 What are chips, anyway

Semiconductors (which usually come in the form of chips) conduct the flow of electricity. 

They're essential in the modern world!

  •  ATMs, trains, the internet—we need semiconductor chips to make them work. 

🐿️ SEA is chipping in?

The US, the EU, India (and many more governments and companies) made moves to boost global chip manufacturing. 

Enter Bosch. This global supplier just opened a semiconductor test center for chips and sensors in Malaysia. 

  • What this means. Asia’s going to get access to semiconductor chips faster.
  • They’ll also invest around $384.35M on a back-end site in Penang until 2030. 

🇲🇾 More on Malaysia

They contribute about 13% of global back-end manufacturing of chips.

  • They’ll do final testing of chips made in Germany. 

And also. Malaysia’s currently trying to be a data hub for Microsoft and Alphabet (Google). Why? It’s trying to be a neutral supply chain base amid US-China tensions.

Know Southeast Asian tech in minutes.

The newsletter that keeps you up-to-date on the top stories on tech and business in Southeast Asia. It's fun, quick and free.
You're now subscribed to BackScoop. See you in your inbox!
Oops! Something went wrong while submitting the form.

Know Southeast Asian tech in minutes.

The newsletter that keeps you up-to-date on the top stories on tech and business in Southeast Asia. It's fun, quick and free.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.