Malaysia launches six locally developed chips with RM300 million sales potential

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Six local semiconductor innovations under the Semiconductor IC Design Park are projected to achieve combined sales potential of RM300 million, according to Economy Minister Akmal Nasrullah Mohd Nasir.
Malaysia launched its first integrated circuit design park in Puchong in August 2024, followed by a second facility in Cyberjaya in November 2025, to accelerate the commercialisation of locally developed chips.
The National Semiconductor Strategy targets the development of 110 high-value semiconductor companies, with an emphasis on AI and strengthening design, packaging and engineering talent development capabilities.

This article was translated from the original. Read the original version by our correspondent here.

Chip launch and commercialisation targets

As reported by The Edge Malaysia, Economy Minister Akmal Nasrullah Mohd Nasir said the six locally developed semiconductor innovations created under the Semiconductor IC Design Park have combined sales potential of RM300 million, although he did not specify when that target could be reached. He said the next step is to secure customers, meet industry requirements and turn these innovations into commercially successful products.

The six innovations are SkyeChip Bhd's MARS1000, an AI processor for cameras, robots and factory systems; MaiStorage's aiDAPTIV+ storage solution for AI computers and servers; and SiliconX's field-programmable gate array, a reprogrammable chip for industrial and automotive applications.

The other three innovations are Infinecs' automotive power regulator, Weeroc Space's power controller chip for satellites and space systems, and Alphaswift's FC Mini, a flight controller for autonomous drones. Malaysia launched its first integrated circuit design park in Puchong in August 2024, followed by a second facility in Cyberjaya in November 2025.

Transitioning to locally owned chip technology

Akmal said the innovations demonstrate that Malaysian companies are developing advanced technology for global markets, rather than merely producing products designed elsewhere. According to him, Malaysia has spent more than 50 years building its semiconductor industry, evolving from assembly operations in Penang into testing, packaging, equipment, manufacturing services and chip design.

The global semiconductor industry is now entering a new phase driven by demand for AI computing power, memory, advanced packaging and specialised chips. Data centres, electric vehicles, smart factories and smart devices are also creating new opportunities for industry players.

Under the 13th Malaysia Plan, Malaysia prioritises AI and high-value industries, while the National Semiconductor Strategy aims to strengthen capabilities in integrated circuit design, advanced packaging and manufacturing equipment. The strategy also targets the development of 110 high-value Malaysian semiconductor companies, including 10 existing local semiconductor-related companies and 100 new companies, while strengthening the country's engineering talent.

Akmal said Malaysia must move beyond manufacturing products domestically to designing, developing and owning its own technology. He said "Made in Malaysia" refers to where a product is manufactured, while "Made by Malaysia" reflects the country's ability to create and own the technology behind it, and future growth must focus on creating and retaining greater value through local innovation.

In our previous coverage of Budget 2027 allocations to strengthen the domestic semiconductor industry, we explained how government funding is intended to help Malaysian companies move into higher-value segments such as integrated circuit design and R&D. The article also highlighted the need to deepen domestic supply chains, deliver investment projects more quickly, and ensure productivity gains translate into greater value added and better wages.

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