AI is no longer sci‑fi, it’s the engine behind smarter, greener factories. From computer‑vision systems that boost defect detection accuracy from 70% to over 97% to generative models forecasting equipment failures weeks in advance, AI is simultaneously cutting costs, emissions, and material waste by double‑digits.
The session was moderated by our Managing Director & Chairperson of AIM Asia, Ms Renee Tan who led our invited panelists, CS Tan, Group VP & GM, STMicroelectronics Malaysia; Dr Eu Leng Poh, Sr Director, Package Innovation, NXP Semiconductors; and Mikhail Kovalev, Director, Product Development & Founder, Accelerated Materials and our audiences on how AI and humanoid robotics are progressively transforming productions and the manufacturing industry, embedding circular models into supply chains, and building smart factories that are both efficient and environmentally responsible.
This on-site session covered areas like Malaysia’s leap up the AI readiness ladder to chatbots becoming on‑demand process expert and other production innovative breakthroughs. The following below are just some of the key takeaways from the event.
1. AI Adoption in Manufacturing: Where Are We Now?
The consensus is clear: AI adoption in manufacturing is just beginning, especially in regions like Malaysia. CS emphasised that while AI applications like chatbots and automation systems are being introduced, the impact has not yet fully moved the needle. Companies are still learning how to integrate these tools effectively.
Nonetheless, CS was confident to share that by next year, we will likely to see more AI applications for more complex tasks.
Dr. Eu shared that regions like Taiwan are far ahead, already operating lights-off factories and using AI for autonomous decisions in wire bonding, PR systems, and x-ray defect detection. Malaysia is catching up, but implementation is in early phases, requiring significant effort and vision.
Malaysia jumped from 29th to 24th in the 2024 Oxford Insights Government AI Readiness Index, reflecting strengthened data governance, tech skills, and infrastructure.
Market research forecasts the Malaysian AI sector will grow at a 26.24 % CAGR through 2031, driven by demand from manufacturing, finance, and medical tech equipment manufacturing.
2. Real-World AI Applications on the Factory Floor
AI is beginning to power critical operations in manufacturing. Chatbots are being used to assist engineers in identifying and solving production issues, acting like experienced mentors. AI is also making waves in vision systems, where it can classify defects and detect anomalies in real time.
One of the most transformative uses? Predictive maintenance. Traditionally, machines were serviced on fixed schedules. Factories are now using AI and sensor data to predict exactly when maintenance is needed, reducing both downtime and waste. As CS puts it: “It’s like your car telling you when it’s time to change brake pads, not just going in every six months for no reason.”
This would then cut troubleshooting time by 40%, freeing up experts to tackle higher‑value tasks. As such, service organisations, utilities, and medical tech providers can deploy similar bots to guide workers, democratising expertise and reducing escalation bottlenecks.
3. Automation vs. ROI: The Cost Conundrum
Investing in automation is not cheap either, and when labour costs are low, ROI becomes a major barrier. CS admitted that most automation projects have poor short-term returns, often taking 4–5 years to pay off.
However, long-term vision is still critical: taking example from his company, STMicroelctronics, they continue to invest millions annually in automation because they believe it is the future.
Meanwhile, Dr. Eu highlighted that advanced AI systems also require heavy infrastructure investment, including GPUs and servers, which adds to the challenge.
The conclusion? Companies need strong leadership commitment to push through the ROI dilemma and embrace digital transformation for long-term success.
CS also commented that transformation is also taking place in both automation and in the optical systems, and things look to be moving at a fast rate.
Semiconductors, electronics, and packaging lines can harness AI inspection to ensure consistency, meet regulatory requirements, and reduce costly recalls.
4. Data, Knowledge & AI Learning
A powerful opportunity lies in leveraging the massive knowledge banks companies already have, like historical process recipes, troubleshooting records, and root-cause analysis. Dr. Eu is exploring how AI can mine these databases to auto-suggest solutions, generate new recipes for products, and provide instant root-cause diagnostics.
She highlighted this is what is lacking in Malaysia’s sustainable‑manufacturing roadmap.
Dr. Mikhail on the other hand, added a deeper scientific perspective: one of the current weaknesses in AI is its over-reliance on successful data. Scientific models are often trained only on positive outcomes since failures aren’t typically published, which limits the AI’s ability to truly innovate. Just like humans, AI needs both success and failure data to grow smarter.
5. Generative AI and the Next Frontier
The future isn’t just about prediction; it is about creation. Dr. Mikhail shared that we are now entering the era of Generative AI, where machines can suggest entirely new solutions, materials, or processes rather than just identifying trends from the past.
Thanks to the exponential rise in computational power, older algorithms from the 1950s are finally becoming usable at scale, enabling language models, image models, and new generative tools that could revolutionise how products are designed and optimised.
6. Toward Sustainable, Inclusive Innovation
The panel also touched on the importance of aligning tech progress with humanity, sustainability and inclusion. Our chairperson, Renee Tan at the same time also introduced initiatives like the Artificial Intelligence International Institute (AIII), which advocates for AI for good and HER® Entrepreneur, which uplifts women leaders across Asia. Their shared goal? To build ecosystems that combine tech, policy, and people in service of Industry 5.0, where humans and machines co-create the future.
Hashtaqs successfully wrapped up the Advanced Innovation & Manufaturing Asia CXO Forum KL 2025 on 16 April 2025 which was held at Arcc Spaces, Kuala Lumpur. Under the theme ‘From AI Breakthroughs to Scaled Production: Fast‑Tracking Innovation into Sustainable Manufacturing Excellence’, the event convened business and tech leaders, MNCs and industry experts. It was filled with insights, honest conversations, and purposeful networking focused on driving innovation and sustainable progress across the manufacturing sector.
We collaborated with ten ecosystem partners from the likes of AIII (Artificial Intelligence International Institute), CXO4Good, HASH Innovation Asia, HER® Entrepreneur, Heealy, IEEE, IEEE Electronics Packaging Society, TNGlobal, Entrepreneur Growth Hub and TusStar Malaysia, creating a truly pan‑industry ecosystem.
The AIM Asia CXO Forum series proved that AI is not just hype, it is the heart of sustainable, efficient manufacturing.
From predictive maintenance to generative design, from digital mentors to fully automated factories, AI is revolutionising manufacturing. However, success requires more than just tech alone. It takes visionary leadership, investment, collaboration, and above all, a human-centered mindset.
As the AIM Asia network continues to grow, one thing is clear: The future is here. It is just getting started.
Join us for the next upcoming CXO Forum session in Singapore on 29 May 2025 at Suntec Tower 2, register now to stay ahead of the curve.
Also, join us from the 11-12 September 2025 in Penang, Malaysia for the Advanced Innovation & Manufacturing (AIM) Asia Week 2025, a premier platform that brings together advanced manufacturing industry leaders, innovators, and policymakers to explore the transformative potential of Industry 5.0 in the advanced manufacturing sectors such as the semiconductor, electronics, biotech, medtech, renewable energy and green tech industries.
Don’t miss the chance to be part of Asia’s manufacturing revolution. Register now to secure your spot at AIM Asia 2025 and stay ahead in the rapidly evolving industrial landscape.
Hashtaqs scales up and internationalise businesses through brand transformation, omnichannel marketing implementation, and ecosystem development, supported with funding for Singapore businesses.
Contact us at +65 8868 1418 or [email protected], and visit www.hashtaqs.com to learn more.
