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KUALA LUMPUR, April 5 (Bernama) -- The front-end section or wafer fabrication manufacturing of the semiconductor industry in Southeast Asia is expected to achieve a capital expenditure (CAPEX) growth of 77 per cent between US$1 billion and US$1.8 billion this year. In a statement Monday, Semiconductor Equipment and Materials International (SEMI) said the capex growth would result from an increase in demand for storage equipment and tablets in the world. "Based on the robust semiconductor industry in the region coupled with Malaysia’s position as a vibrant semiconductor destination, SEMI's decided to again organise SEMICON Southeast Asia 2016 (SEMICON SEA 2016) in northern state Penang this year," it said. Special Advisor to the Chief Minister of Penang and Director of investPenang Lee Kah Choon said Penang played a vital role in contributing to Malaysia's electrical and electronics (E&E) industry, which is one of the nation's most thriving sectors. "Last year, Penang's E&E sector contributed 65 per cent of total investments for the state. This is more than 50 per cent of total investments for the E&E sector in Malaysia. "Despite slowing global semiconductor sales, Malaysia's exports of semiconductor products remain healthy, due to the focus on niche growing segments, especially those related to Internet of Things and a favourable foreign currency exchange,” he said. SEMI said over 7,500 delegates from leading semiconductor nations such as Singapore, Vietnam, Thailand, the Philippines, Indonesia, and host Malaysia are expected to attend the SEMICON SEA 2016. "It will showcase key trends and solutions in semiconductor design and manufacturing, including emphasis on serving the needs of the expanding applications market, many of which require development of specialised materials, packaging, and test technologies plus new architectures and processes," it said. --BERNAMA