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The Malaysian government has identified several local integrated circuit (IC) design companies as part of its strategy to develop “Made by Malaysia” semiconductor intellectual property (IP) and strengthen the country’s role in the global chip industry.
According to the Ministry of Investment, Trade and Industry (MITI), more than six local IC design firms are currently being supported to expand Malaysia’s domestic semiconductor ecosystem and reduce reliance on foreign technology.
Developing Local Tech Champions
The government has also identified 13 Malaysian companies that could be developed into major industry players under the “10+100 Local Champions” initiative.
The program aims to create:
- 10 companies generating more than US$1 billion (RM3.9 billion) annually
- 100 companies generating at least RM1 billion in revenue.
These initiatives are part of Malaysia’s broader push to move up the semiconductor value chain—from manufacturing and assembly toward chip design, intellectual property development, and advanced technology innovation.
Support for Startups and Innovation
The government is also supporting semiconductor startups through programs such as MyChipStart and SemiconStart, which focus on developing local chip designers and strengthening research and development (R&D) capabilities.
Officials said the government is building mechanisms to connect local IP owners with industry partners and investors, accelerating commercialization of research and driving the creation of high-impact technology products.
Semiconductor Investment Still Dominated by Foreign Firms
Data shared in parliament showed that foreign direct investment still dominates Malaysia’s semiconductor industry.
Between 2020 and 2025:
- Foreign direct investment (FDI): RM56.8 billion
- Domestic investment (DI): RM3.5 billion
The government acknowledged that this heavy reliance on foreign investment highlights the need to strengthen local companies to ensure long-term resilience in the industry.
RM2 Billion Allocation for 2026
To boost domestic participation, Malaysia has allocated nearly RM2 billion in funding for the semiconductor sector in 2026, including targeted grants and financing programs designed to accelerate innovation and support local firms.
The initiative forms part of Malaysia’s National Semiconductor Strategy (NSS), which aims to position the country as a major global hub for semiconductor design and manufacturing.
