Link Copiedcheck_circle
EV

CAEP Calls for Closer Ties Between Auto and Chip Sectors

Kumeran Sagathevan

Share via

506602716_1262897488525686_3145253122368838322_n.jpg


At the first meeting of the Council of Automotive Eminent Persons (CAEP), Deputy MITI Minister YB Liew Chin Tong emphasised Malaysia’s pressing need to integrate its thriving semiconductor and automotive industries.

The CAEP, chaired by MITI Minister Tengku Zafrul Aziz, has been formed to re-evaluate and transform the country’s automotive sector in response to global shifts toward electric, connected, and autonomous vehicles.

Although Malaysia is home to a well-established semiconductor ecosystem and a growing automotive industry, both of which collectively support hundreds of thousands of jobs, Liew noted the absence of meaningful synergy between the two.


Thumbnail-Chip-Shortage-Issue-Improving-1.png


“There is no significant horizontal integration between our semiconductor and automotive industries,” he said. “This is despite the fact that modern vehicles are increasingly defined by semiconductors, particularly in the context of connected, autonomous, shared, and electric mobility trends.”

Malaysia currently plays a critical global role in semiconductor manufacturing, particularly in chip packaging, testing, and assembly. It is also active in producing automotive-grade chips, a high-growth segment seen as vital to the future of mobility.

Bridging the gap between the two sectors, Liew said, could significantly strengthen Malaysia’s position across both industries. As vehicles become more reliant on software and electronics, the integration of local capabilities can offer both economic and strategic advantages.


506610678_1262897455192356_6349948143301639047_n.jpg506530536_1262897425192359_5363221304536053888_n.jpg


“The opportunity lies in aligning the strengths of both sectors. This includes facilitating collaboration between OEMs, Tier 1 suppliers, and chipmakers, as well as building domestic capabilities across the mobility technology value chain,” he explained.

He further highlighted that Malaysia’s reliance on internal combustion engine (ICE) vehicles has contributed to a high national oil import bill. This, in turn, strengthens the case for accelerating the electric vehicle transition as a means of ensuring long-term energy security.

In this context, the appointment of Petronas CEO Tengku Muhammad Taufik as Alternate Chair of CAEP reflects the government’s broader ambition. His leadership is expected to support a more integrated national strategy that links energy, automotive, and semiconductor development with the aim of returning Malaysia to the ranks of major oil-exporting nations.


506604651_1262897388525696_7436065779357831375_n.jpg


Industry observers have welcomed these developments as timely. With global automakers pivoting to EVs and smart mobility solutions, supply chains are being reorganised around advanced electronics and chip technologies.

Malaysia, already a crucial part of this global value chain, is well positioned to benefit from this provided it pursues deliberate cross-sector collaboration and strong policy direction.

The CAEP is expected to outline a national roadmap in its next phase of work, with key focus areas likely to include innovation clusters, talent development, and co-located industrial ecosystems.

As the global automotive landscape continues to evolve, Malaysia is not only working to keep pace but is seeking to lead in high-value areas, powered by its semiconductor expertise and growing automotive ambition.



Tagged:

Council of Automotive Eminent Persons (CAEP
Semiconductor and EV
automotive-grade chips
Petronas
National Roadmap
Share This Article

Written By

Kumeran Sagathevan

More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!

Share via

Related News

EV

MITI Launches NAP2020 Mid-Term Review with Focus on EVs, NxGV

MITI set to reassess NAP2020 and ensure Malaysia’s automotive policy keeps pace with EVs, NxGVs and global mobility trends.

International

Nexperia Export Ban Triggers Global Auto Chip Crunch

Automakers are racing to secure chip supplies after China halted Nexperia exports.

30-10-2025
Auto News

Sarawak’s Gas Push Could Undermine Petronas - Analyst

Sarawak’s bid for gas control could unsettle Petronas and Malaysia’s reputation as a trusted LNG supplier.

08-09-2025
Auto News

PM: No RON95 Price Hike Despite Global Tensions

Malaysia will keep RON95 prices steady despite rising global oil tensions, says PM.

Tech

ADaPTiV: MARii, Petronas Smart Vehicle Maintenance Tech

MARii and Petronas launch ADaPTiV to revolutionise car care using AI and real-time data.

Auto News

PMX: Petronas Layoffs Not a Crisis, Mostly Contract Staff

PMX: 5,000 job cuts at Petronas isn’t alarming, most affected are contract workers.

Auto News

5,000 Retrenched As Petronas ‘Reinvents’ Itself

Petronas ‘reinvents’ itself, job cuts totalling up to 5,000 people, promotion freeze, and revamped processes comes in wake of which.

Auto News

Perodua Inks MoU With Gentari And Petronas For EV Charging And More

Perodua inks Memorandum of Understanding (MoU) with Gentari and Petronas over EV charging and various additional services.

21-11-2024

Latest News

EV

Is This The Next Bezza? Theottle’s ‘Situ’ Render Takes The Perodua C2 Concept To The Next Level

Is the new Perodua ‘Situ’ the electric Bezza we’ve been waiting for? We break down Theottle's stunning render and how it evolves Perodua’s C2 concept into a future reality.

02-07-2026
EV

Porsche Malaysia Quietly Replaces The RM575k Taycan With A Shocking RM775k Price Tag — Here’s Their Official Response

Porsche Malaysia secretly dropped a massive RM200k to RM410k price hike across the EV Taycan line overnight. Is it post-tax-holiday reality or tech inflation?

01-07-2026
EV

Bermaz Just Scrapped Its Deepal Deal, And It Signals The End Of Cheap Imported EVs In Malaysia

Bermaz Auto has scrapped its Deepal deal. With new July 1st MITI rules now in effect, is the era of affordable imported EVs in Malaysia officially over?

01-07-2026
EV

Tesla Malaysia Stays Cheap Despite MITI’s New July Ruling, But There’s A Catch

Tesla Malaysia prices remain steady despite new MITI import rules, but there's a catch. Find out why Tesla is exempt and what the removal of the one-time FSD purchase means for buyers.

01-07-2026
EV

From Tanjong Malim To Bandar Seri Begawan: Proton e.MAS Expands Into Brunei

Proton e.MAS officially expands into Brunei through Grand Motors! See how our national carmaker is taking Malaysian-developed EV tech to the regional stage.

30-06-2026
EV

The Great EV Clearance: Why You Need To Act Fast If You Want A ‘Budget’ EV In Malaysia

Starting July 1, 2026, new MITI rules on imported EVs could push prices over RM300k.

29-06-2026
EV

Perodua QV-E Expands Nationwide: First Units Arrive in Sabah and Sarawak

Perodua has confirmed the QV-E is arriving in Sabah and Sarawak on July 15, 2026. Discover the new pricing, localized ownership models, and what the national EV rollout means for East Malaysian drivers.

26-06-2026
EV

Proton e.MAS Owners Can Now Charge At Their Condos For Only RM0.63/kWh – Here’s The Full Scoop

Proton e.MAS launches a nationwide EV charging ecosystem for condos. Enjoy exclusive rates from RM0.63/kWh and save 30% on monthly fuel costs. Read the scoop!

25-06-2026