Kuala lumpur: The government has secured more than RM63 billion in investments under the National Semiconductor Strategy (NSS) as of March this year, with RM5 billion sourced domestically and RM58 billion from foreign investors, announced Prime Minister Datuk Seri Anwar Ibrahim.
According to BERNAMA News Agency, notable projects include Carsem’s advanced packaging for energy efficiency, electric vehicles, connectivity, and artificial intelligence; NXP’s semiconductor products; Infineon’s world’s largest 200mm silicon carbide power fab; Syntiant’s MEMS microphone and sensors; and Plexus’s manufacture and re-manufacture of printed circuit boards.
The government aims to grow 10 semiconductor companies with revenue exceeding US$1 billion and 100 companies with revenue over RM1 billion. Malaysia currently has at least 13 homegrown companies across the semiconductor value chain, which are emerging as potential national champions. Among these, nine companies, including Carsem, Inari, Pentamaster, ViTrox, and Kelington, are expected to generate over RM500 million in revenue this year. Additionally, four integrated circuit design and development firms, such as OppStar, SkyeChip, Infinecs, and Experior, are experiencing annual revenue growth above 25 percent.
Prime Minister Anwar Ibrahim expressed his vision for Malaysia to reflect on this period as a pivotal moment in developing its very own Fortune 500 tech companies. Speaking at the ASEAN Semiconductor Summit (ASEMIS) 2025, he highlighted the initiative to create 60,000 engineers and address the tight labor market for skilled tech talent. CREST and HRD-Corp are collaborating to establish a tech talent pipeline for the semiconductor industry from 2025-2030, with a proposed allocation of RM1.2 billion over five years.
Launched on May 28, 2024, the NSS is a government initiative aimed at transforming Malaysia into a global powerhouse in the semiconductor industry. The strategy outlines a three-phase plan, supported by RM25 billion in fiscal support and targeted incentives, to attract significant investments, develop local champions, and nurture a skilled workforce. The plan also aims to advance Malaysia up the semiconductor value chain by focusing on integrated circuit design, advanced packaging, and manufacturing equipment.
Looking ahead, Anwar emphasized Malaysia’s readiness to provide stronger backing for the NSS, particularly in expanding the 10+100 national champions. The government will unlock more catalytic capital to support early-stage research and development, product development, and ecosystem scaling. This will include targeted financing instruments, matching funds, and customized incentives, alongside continued investments by government-linked investment companies (GLICs) to strengthen local semiconductor capabilities.
To date, the government has received commitments of more than RM2 billion to support the industry’s development. This support comes from GLICs like Khazanah and KWAP, the Bank Negara Malaysia, and partnerships with global players. The government also plans to elevate its semiconductor diplomacy through deeper government-to-government cooperation, expanding market access for Malaysian firms and forging trusted technology partnerships.
As Chair of ASEAN 2025, Malaysia will lead efforts to strengthen regional collaboration, positioning ASEAN as a resilient and competitive hub in the global semiconductor value chain. In strengthening the talent ecosystem via the CREST and HRD Corp initiative, the government will drive stronger collaboration across public, private, and academic institutions to build a future-ready and industry-relevant workforce. Additionally, R and D efforts will be intensified through strategic collaboration between government, industry, and academia to ensure Malaysia remains competitive in a rapidly evolving, high-tech global landscape.