The global semiconductor industry is expected to reach $650 billion by 2024, spurred by the adoption of 5th Generation (5G), artificial intelligence (AI), and Internet of Things (IoT) technologies, making the electronics and semiconductor sector a key component of technological innovation worldwide. With 13% of the global market for semiconductor assembly, packaging, and testing, Malaysia is a key player. The electrical and electronics (E&E) sector contributes 5.8% of the nation’s GDP and 40% of its exports. By improving fault detection accuracy to over 90% and lowering maintenance costs by up to 25%, the incorporation of AI into semiconductor production has revolutionized processes. The $5.3 billion National Semiconductor Strategy and Malaysia’s Industry 4.0 goals align with AI-powered solutions that maximize productivity, anticipate equipment faults, and encourage sustainable practices. The review focuses on the integration and effectiveness of AI in the electronics and semiconductor industry including the utilization of AI in quality control and inspection, and inventory management. Emphasizing its impact on productivity, innovation, and global competitiveness particularly f
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