George Gregory, CEO of Malta Enterprise, examines Malta’s semiconductor landscape and discusses the government’s strategy, challenges faced and solutions put in place to ensure the sector’s growth and competitiveness in a dynamic global market.
As global demand for semiconductor technology continues to soar, Malta is establishing itself as a key player in this important industry. With a thriving semiconductor ecosystem that boasts remarkable resilience and innovation, the country is emerging as a hub for advanced manufacturing, attracting renewed interest from international investors.
To discuss these exciting developments, George Gregory, CEO of Malta Enterprise, examines Malta’s evolving semiconductor landscape, highlighting the government’s strategies aimed at strengthening the sector, the challenges faced and the solutions being put in place to ensure sustained growth and competitiveness in an ever-changing global market.
Malta’s semiconductor ecosystem
Malta’s semiconductor ecosystem has demonstrated remarkable resilience and adaptability over the years. The sector remains one of the strongest pillars of Malta’s advanced manufacturing base, with semiconductor-related exports amounting to approximately €1 billion and accounting for a significant amount of total industrial exports in 2024.
Companies in this space have consistently reinvested to upgrade their capabilities and expand into higher-value niche markets. An important milestone was STMicroelectronics’ investment under the European Key Projects of Common Interest (IPCEI), which strengthened Malta’s role in Europe’s strategic semiconductor value chain. STMalta is the island’s largest employer and ST’s largest advanced-led manufacturing back-end plant in Europe.
Malta is moving beyond traditional manufacturing and is increasing diversification throughout its supply chain. Trelleborg develops advanced rubber sealing solutions for semiconductor applications, while Elepac continues to strengthen its expertise in electronic packaging. Together, these developments highlight Malta’s ability to support both front-end and back-end semiconductor activities.
The local industry serves world-class customers, including major companies in the automotive, telecommunications, and industrial electronics sectors.
We are also observing renewed interest from foreign investors in setting up operations in Malta, particularly in emerging semiconductor niche markets related to sustainability, materials engineering and testing services. At the same time, several locally-owned companies are expanding internationally, reflecting the growing sophistication of Malta’s talent base and the strength of its innovation ecosystem. In summary, Malta’s semiconductor sector is evolving from a stable manufacturing base to a dynamic, innovation-driven ecosystem that continues to attract investment, enable collaboration and contribute to Europe’s strategic resilience.
Government Strategy: Shaping the Semiconductor Landscape
The Maltese Government has demonstrated a strong and sustained commitment to strengthening the semiconductor sector as a key pillar of advanced manufacturing. This commitment is reflected in Malta’s participation in the Chip Joint Venture, which calls for the establishment of a Semiconductor Competence Center, a strategic initiative that will form the basis for future growth and innovation. We approached this project with confidence, seeing it as an important milestone in this important field.
Malta’s long-term vision 2050 recognizes the semiconductor industry as a strategic enabler of economic transformation. Its focus is twofold. One is to create new high-value niches within the semiconductor supply chain, while at the same time consolidating and restructuring the operations of existing players to ensure continued competitiveness and sustainability.
The national strategy focuses on consolidation, reengineering and renewal, supporting the upgrade and diversification of existing companies and providing new impetus through the attraction, retention and growth of new business.
In parallel, Malta is developing a semiconductor-specific industrial strategy, which has been shaped through extensive consultation with both local industry leaders and international stakeholders. This holistic approach will ensure that Malta’s semiconductor ecosystem continues to evolve in line with emerging technologies, global market trends and Europe-wide ambitions for resilience and innovation.
Growth of the semiconductor industry: challenges and solutions
As in many other countries, talent availability remains one of the key challenges for Malta’s semiconductor industry. Attracting more students to pursue studies in science, engineering, and technology fields that lead to semiconductor-related careers is essential. Strengthening the pipeline of skilled professionals is critical to sustaining and expanding the industry’s future.
Another key area is deepening the links between Malta’s ecosystem and more mature semiconductor hubs abroad. Cooperation with established international centers of excellence enables knowledge transfer, collaborative research and exposure to global best practices. Examples of success include this year’s placement of talented Maltese students at imec, one of the world’s leading semiconductor research and development centres. This is the model we aim to build.
It is also important that initiatives at EU level remain available to small states and their small and medium-sized enterprises, including start-ups working on semiconductor technology. By actively participating in European programmes, countries like Malta can contribute to and benefit from the wider European chips ecosystem. By addressing these challenges through education, international cooperation and inclusive access to EU opportunities, Malta can continue to strengthen its role in the European semiconductor value chain.
Malta Semiconductor Competence Center
The establishment of the Malta Semiconductor Competence Center was a strategic decision aimed at leveraging Malta’s proven strengths in semiconductor manufacturing and operations, while ensuring a strong international profile linking local capabilities to the broader European ecosystem.
From the beginning, our goal was to establish a competence center with differentiated services that would complement, rather than duplicate, the work of other centers across Europe. To achieve this, MSCC has adopted a multifaceted approach built around three pillars:
Training and Skills Development – We offer customized programs for upskilling and reskilling both current professionals and future talent entering the semiconductor field. Research and innovation support – assists companies in developing R&D projects and facilitates access to EU funding mechanisms. Technology Commercialization and Startups – Fostering innovation-driven entrepreneurship by supporting early-stage semiconductor ventures.
To strengthen this third pillar, we partnered with Silicon Catalyst, a leading global incubator for semiconductor startups. Through this partnership, European-based startups will have access to Silicon Catalyst’s extensive ecosystem, resources and mentorship to accelerate their path to market.
As part of this partnership, MSCC launched ChipStartEU, a new program designed to support early-stage chip design startups. The initiative has already generated a lot of interest, with over 40 companies applying and 12 selected for the first cohort. These startups will benefit from access to Silicon Catalyst’s global network and expertise, helping them turn innovative ideas into commercial success stories and contributing to Europe’s semiconductor ecosystem.
Ultimately, MSCC’s mission is to empower Malta’s semiconductor ecosystem and equip it with the skills, innovation capabilities and international partnerships it needs to thrive within Europe’s broader chip law framework.
Global Semiconductor Conference Malta: What to Expect
Global Semiconductor Conference Malta (GSCM), taking place from 10-11 November 2025, will bring together the most influential voices in the global semiconductor industry, from policymakers and executives to innovators, investors and thought leaders.
This year’s theme, “A decade of competition for a €2 trillion semiconductor industry”, will set the stage for high-level discussions on the global outlook, investment priorities and technological changes that will shape the sector over the next decade.
Attendees can expect:
Strategic insights into global market dynamics, chip legislation and European competitiveness in the semiconductor value chain. Engaging panel discussions covering topics such as geopolitical trends, supply chain resilience, sustainability, and AI-driven innovation. A dedicated investor forum examining the current state of semiconductor venture capital in Europe. Networking opportunities with industry leaders, start-ups and R&D institutions across Europe and beyond.
More than discussion, GSCM offers a great opportunity to connect, collaborate and build partnerships against the backdrop of Malta’s vibrant Mediterranean environment. Interested participants can click this link to view the program and register. G.S.C.M.
Holding EFECS 2025
The hosting of EFECS 2025 (European Forum for Electronic Components and Systems) is an important milestone for Malta and a clear recognition of the country’s growing role within the European semiconductor and microelectronics ecosystem.
It is both a privilege and an opportunity for Malta to welcome Europe’s leading policy makers, innovators and industry players. This initiative will showcase our national capabilities, from advanced manufacturing and design expertise to research, innovation and talent development. It also demonstrates Malta’s growing profile and credibility within the European Tipping Law framework and related initiatives. Over the past few years, we have built a strong foundation through public-private cooperation, participation in European projects and the establishment of the Malta Semiconductor Competence Center. Hosting EFECS is a natural continuation of this journey.
Beyond the conference itself, the event provides a platform to strengthen Malta’s partnerships, attract new investment and engage with European and global players who will shape the future of the industry. It is also an opportunity to demonstrate that Malta is not only participating in, but actively contributing to, one of the world’s most strategic sectors, and to inspire young generations.
This article will also be published in the quarterly magazine issue 24.
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