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<strong>ETP</strong> ANNUAL REPORT 2011<br />

Exhibit 7.3<br />

Developing Integrated Circuit Design Firms<br />

Integrated Circuit (IC) design companies are ideal test beds to<br />

produce highly-skilled human capital as they require knowledge<br />

workers with the inventiveness to create intellectual property.<br />

Malaysia has only achieved moderate success in this field, with a<br />

mere 15 active IC design firms comprising a blend of multinational<br />

and domestic companies before 2011. Nevertheless, the success<br />

of existing IC design facilities like Intel’s Penang Design Centre has<br />

set the stage for others to follow in their footsteps.<br />

The goal of this EPP is to add another 50 IC design companies<br />

beyond the present number. Batu Kawan in Penang has been<br />

designated as a hub for high value E&E including IC design<br />

services.<br />

Achievements<br />

Five out of the original 2011 target of 10 IC design firms have<br />

been set up. Additionally, an IC Design Centre of Excellence has<br />

been completed on schedule while the Failure Analysis Lab is<br />

estimated at 65 per cent completion. However, the 2011 target<br />

for a Contactless Testing Lab, eg. Penang Skills Development<br />

Centre’s (PSDC) EMC lab, to achieve international accreditation<br />

was only obtained in early January 2012. Additional resources will<br />

be invested to assist PSDC to increase the reach and effectiveness<br />

of the EMC Lab, which was funded by an initial Economic Planning<br />

Unit (EPU) grant. This service offered by this lab will further<br />

strengthen efforts to grow the high value-added design and<br />

development cluster.<br />

Centre of Excellence (CoE)<br />

for Electrical and Electronics: IC Design<br />

The CoE is an educational institution whose main point of focus is in<br />

Integrated Circuit (IC) Design. It provides education through short<br />

courses with the objective of aligning the E&E industry in a<br />

competitive and innovative track, in line with EPP3: Development of<br />

IC Design Firms. Usains InfoTech Sdn Bhd (UISB) acts as the Special<br />

Purpose Vehicle for this project.<br />

26 graduate trainees<br />

in Advanced Digital<br />

Design<br />

24 graduate trainees<br />

in Advanced Analog<br />

Design<br />

• Commenced on Jan 2010<br />

• Completed in June 2011<br />

• Commenced on Aug 2010<br />

• Completing in Jan 2012<br />

Development programmes<br />

• Product development for potential spin-off and nurture local incubator<br />

• Development of IC Design Outsourcing Programme to support ecosystem<br />

• Promote CoE E&E initiatives<br />

126<br />

EPP 3<br />

MSc degree<br />

by USM<br />

Exhibit 7.4<br />

Failure Analysis Illustration<br />

Level 1<br />

Physical<br />

Analysis<br />

Gross Defect<br />

• Physical<br />

• On surface<br />

Level 2<br />

Electrical Physical<br />

Analysis<br />

Embedded Defect<br />

• In between layers<br />

• Embedded<br />

defects<br />

Level 3<br />

Material<br />

Analysis<br />

Material<br />

characterisation<br />

• Molecular defects<br />

• Polymer bonds<br />

and structures<br />

Moving Forward<br />

A concerted effort will be made in 2012 to address the shortfall<br />

in meeting this year’s KPI targets. Specifically, the lead (MIDA)<br />

and supporting agencies (NCIA, EPU, MDeC, Silterra and the<br />

fabrication consortium) for this EPP will intensify the drive to<br />

attract multinational corporations and grow local players at the<br />

originally-proposed rate of 10 per year for a total of 50 by 2015.<br />

The agencies will continue to identify and encourage potential IC<br />

design companies to set up in Malaysia with the value proposition<br />

of proximity to fabrication facilities. MIDA will seek to entice<br />

potential firms with pre-approved incentives with particular<br />

focus on filling the niche for smaller design firms. Such incentives<br />

seek to encourage multinationals to outsource their IC design to<br />

domestic firms. Meanwhile, the EPU will increase financial support<br />

to skills development centres to develop human capital in IC<br />

design. To support the emergence of aspiring local companies,<br />

NCIA is putting in place several measures to lower the start-up<br />

costs for home-grown firms. These include the provision of a<br />

prototyping lab, a test lab for certification and standards, and the<br />

requisite electronic design automation tools on a sharing and<br />

pay-per-use basis.

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