Malaysia Pushes Forward with Homegrown Chip Design Firms to Strengthen ‘Made by Malaysia’ Semiconductor IP
KUALA LUMPUR — The Malaysian government has taken a major step toward strengthening the country’s semiconductor industry by identifying and supporting several local integrated circuit (IC) design firms, a move aimed at developing homegrown technology intellectual property under the “Made by Malaysia” initiative.
According to the Ministry of Investment, Trade and Industry (MITI), more than six Malaysian chip design companies have been identified and supported as part of the government’s long-term strategy to elevate the nation’s position in the global semiconductor value chain.
The initiative marks a shift in Malaysia’s semiconductor ambitions — moving beyond its traditional role as a manufacturing base toward becoming a developer of advanced semiconductor technologies.
MITI said the strategy aligns with the broader goals of the National Semiconductor Strategy (NSS), which focuses on expanding Malaysia’s technological capabilities while strengthening the domestic semiconductor ecosystem.
Developing Strong Local Technology Champions
In addition to supporting IC design companies, the government has also identified 13 Malaysian firms with the potential to grow into major industry leaders.
These companies are being groomed under the “10+100 Local Champions” programme, an initiative aimed at developing high-performing local enterprises capable of competing globally.
Through this programme, the government aims to cultivate 10 Malaysian companies that can achieve annual revenues exceeding US$1 billion.
At the same time, 100 additional companies are targeted to reach annual revenues of at least RM1 billion.
The programme is intended to nurture strong domestic technology firms while strengthening Malaysia’s long-term competitiveness in the semiconductor industry.
Encouraging Local Innovation and Startups
MITI said the government is also supporting startup participation in semiconductor innovation through initiatives such as MyChipStart and SemiconStart.
These programmes are designed to help Malaysian startups develop expertise in semiconductor chip design and advanced technologies.
By encouraging innovation among new technology companies, the government hopes to build a stronger pipeline of semiconductor talent and intellectual property.
The programmes also provide opportunities for young technology entrepreneurs to contribute to Malaysia’s growing semiconductor ecosystem.
Connecting Research, Industry and Investment
To further accelerate innovation, the government is developing mechanisms to connect Malaysian intellectual property developers with industry partners and investors.
MITI said these initiatives aim to shorten the time required to commercialise research and development (R&D) outcomes.
Through stronger collaboration between researchers, companies and investors, Malaysia hopes to bring more locally developed semiconductor technologies to market.
The approach is expected to increase the impact of local innovation while expanding the country’s portfolio of technology IP.
Semiconductor Investment Continues to Rise
The ministry also highlighted the strong growth of semiconductor investment in Malaysia over recent years.
Between 2020 and 2025, the sector recorded robust investment growth, driven largely by foreign direct investment.
During that period, foreign direct investment in Malaysia’s semiconductor sector reached RM56.8 billion.
Domestic investment, while smaller, recorded a total of RM3.5 billion.
MITI noted that while foreign investment remains a major driver of the industry, increasing domestic investment is essential to strengthening Malaysia’s industrial resilience.
Funding Support to Strengthen Industry
To support the continued development of the semiconductor sector, the government has allocated nearly RM2 billion in funding for 2026.
The funding will support initiatives aimed at strengthening local technological capabilities, accelerating innovation and supporting semiconductor research.
MITI said the government has also optimised grant schemes to ensure financial resources are directed toward projects with the greatest strategic impact.
These initiatives are expected to strengthen Malaysia’s domestic semiconductor ecosystem while supporting the development of high-value technologies.
Malaysia Aims to Move Up the Global Semiconductor Value Chain
As global demand for semiconductors continues to grow, Malaysia is positioning itself to play a more prominent role in the industry.
By supporting local chip design companies and encouraging innovation-driven growth, the government hopes to develop a strong base of technology intellectual property owned by Malaysian firms.
The strategy is intended to transform Malaysia from a manufacturing hub into a key centre for semiconductor innovation and development.
With stronger domestic capabilities and increased participation from local companies, Malaysia aims to secure a more strategic role within the global semiconductor supply chain.
-wilayah.com.my
