While lots of past research concentrated on employee retention out of Malaysia countries, Malaysia’s employee retention issue was being neglected and underexplored. Considering the recent competitive market and the issue of employee retention has become a common manpower issue, especially in the semiconductor industry, this research aimed to provide an empirical response and focus on the factors that influence employee retention among executive employees in the semiconductor industry. This research focuses on 5 factors which include compensation and benefits, training and development, performance appraisal, leadership style, and organizational culture. To examine the relationship proposed in the framework, the questionnaires were distributed online in four of the cities in Malaysia that are believed to have semiconductor industries, which are Melaka, Negeri Sembilan, and Johor Bahru. The statistical analyses were then conducted on the 175 collected responses with the aid of SPSS. The findings demonstrated that compensation and benefits, training and development, leadership style and organizational culture were the factors influencing employee retention. With the findings, the main contribution of this research was the factors that affect employee retention.