Selangor strengthens its shift towards chip design and high-value technology

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Selangor strengthens chip transition

Highlights

Selangor is focusing on high-value activities such as semiconductor chip design, advanced automation and green technology to strengthen the local industrial ecosystem.
The Malaysia Semiconductor IC Design Park in Puchong involves developing high-performance computing infrastructure and training local engineers to enhance chip design expertise.
SIBS 2026 features more than 140 technology exhibitors, including Sandisk, Nexperia, Oppstar and SkyeChip, strengthening the competitiveness of local and regional businesses.

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

Selangor's high-tech industrial strategy

As reported by The Edge Malaysia, Menteri Besar Datuk Seri Amirudin Shari said at the opening of the Selangor International Business Summit 2026 that the state is positioning itself as a hub for high-value activities, including semiconductor chip design, advanced automation and green technology. He said the shift is deliberate, aiming to take Malaysia beyond its traditional manufacturing strengths towards an ecosystem driven by local expertise, innovation and engineering capabilities.

According to Amirudin, Selangor wants to attract investors that contribute skilled talent, advanced technology and long-term collaboration, rather than competing primarily on low costs. He stressed that the state is targeting higher-value industrial segments, including front-end integrated circuit design, electronic design automation and intellectual property creation.

He also cited the Malaysia Semiconductor IC Design Park in Puchong as an example of efforts to build local chip design capabilities. The initiative includes the provision of high-performance computing infrastructure, technology development support and training for local engineers to design more advanced chips.

Impact on local businesses and regional competitiveness

Beyond semiconductors, Selangor is also shifting its industrial base towards life sciences, green technology and advanced digital infrastructure. Amirudin said the coming decade will be a crucial period for strengthening the state's position in Asia while helping local small and medium-sized enterprises compete with regional players.

He said economic growth must translate into better wages and broader opportunities, rather than being concentrated among only a small group. According to him, Selangor's main goal is to narrow inequality gaps, whether in terms of wages or opportunities.

SIBS 2026 runs until Saturday and includes dedicated artificial intelligence and semiconductor summits featuring more than 140 technology exhibitors, including Sandisk, Nexperia, Oppstar and SkyeChip.

In our previous coverage of artificial intelligence (AI) adoption by small and medium-sized enterprises (SMEs) in Malaysia, we highlighted that adoption rates are increasing, but implementation gaps remain significant as the majority of companies are still at a basic stage. The article also outlined the industry's shift in focus towards AI applications that genuinely impact productivity, operations and competitiveness, rather than merely experimenting with new tools.

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