Kuala lumpur: The government has taken decisive steps to develop 'Made by Malaysia' technology intellectual property (IP) by identifying and supporting the establishment of more than six local integrated circuit design firms. This initiative marks a critical effort in fostering homegrown technology capabilities.
According to BERNAMA News Agency, the Ministry of Investment, Trade, and Industry (MITI) has recognized 13 local companies as potential candidates for achieving the '10+100 Local Champions' target. This target aims to propel 10 companies to annual revenues exceeding US$1 billion and 100 companies to at least RM1 billion in revenue. The government is further nurturing start-ups through initiatives like MyChipStart and SemiconStart, designed to enhance the competencies of local chip designers.
The government is also creating mechanisms to align local IP owners with industry stakeholders and investors to expedite the commercialization of research and development (R and D), thereby promoting the production of high-impact IP. This was conveyed in a written reply to the Dewan Negara, addressing a query from Senator Datuk Wu Him Ven regarding the progress of Phase Three of the National Semiconductor Strategy (NSS) and the investment breakdown in the semiconductor sector from 2020 to 2026.
MITI highlighted the significance of the semiconductor sector as a pivotal contributor to Malaysia's manufacturing investment landscape. While foreign direct investment (FDI) has historically dominated the sector, recent trends indicate a growing involvement of local companies in the value chain. The ministry reported that semiconductor investment performance from 2020 to 2025 has shown dynamic growth since the NSS's implementation.
Since the NSS's inception, FDI has amounted to RM56.8 billion, while domestic investment (DI) has reached RM3.5 billion. This reliance on FDI underscores the necessity for the government to bolster DI to enhance the resilience of the local industry. In response, the government is providing various financial support mechanisms, allocating nearly RM2 billion for 2026 to strengthen the semiconductor sector. The optimization of grant schemes is also underway to ensure that financial resources are utilized in a focused and impactful manner.