The Semiconductor Industry in Penang: Implications for the New International Division of Labour Theories

Abstract

This paper examines the consequences of the mid-1980s economic crisis on technological change and the international division of labour in the semiconductor industry in Penang. Consistent with orthodox Marxist economists increasing capital-labour ratios targeted at rising productivity through technological deepening the paper argues that the semiconductor industry is becoming more deeply rooted in Penang than before. The focus is increasingly shifting towards industrial deepening through the appropriation of relative surplus value, thereby offering Penang greater opportunities for technological upgrading and high income jobs.

Keywords: Semiconductor, division of labour, industrial upgrading, Penang