These foreign companies set up operations in Malaysia, most of them in Penang, with some starting as early as the 1970s. On one hand, the MNCs bring in more businesses for local equipment players when they develop the local supply chain. According to him, Inari had purchased more than RM2.5 billion worth of equipment from local companies over the last five years. “For local ATE companies, we need to move up the value chain from test assembly packaging equipment to include wafer fabrication equipment. “ATE companies design our own equipment and machines, whereas OSAT companies do not own any intellectual property.
