Government-linked investment companies (GLICs) have invested RM1.4 billion in 2025 across four strategic areas aimed at strengthening Malaysia’s semiconductor ecosystem and advancing the country’s position within the global technology supply chain.
According to the Ministry of Finance’s (MoF) GEAR-uP Progress Report, the investments were focused on scaling Malaysian semiconductor companies, attracting high-value technology transfers, expanding the deep-tech ecosystem and establishing strategic partnerships with global players.
The MoF said the growing demand for semiconductors, driven largely by the rapid adoption of artificial intelligence (AI), has created significant opportunities for Malaysia. While the country currently holds around 13% of the global semiconductor testing and packaging market, it needs to move further up the value chain by developing higher-margin, intellectual property (IP)-driven segments such as integrated circuit (IC) design under initiatives including the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy.
The report highlighted that GLICs are providing long-term investment support to local technology companies at various stages of development, from early-stage venture funding to public market growth. This approach aims to help Malaysian semiconductor firms expand their research and development (R&D) capabilities, strengthen innovation and compete more effectively in global markets.
Beyond supporting domestic companies, GLICs are also working to attract international technology leaders to Malaysia by encouraging high-value investments and facilitating the transfer of advanced capabilities into the local semiconductor industry.
The report noted that partnerships with experienced industry players are being developed through initiatives such as the Cambrian Fund, which aims to nurture next-generation deep-tech startups and strengthen Malaysia’s innovation ecosystem.
GLICs have also established strategic collaborations with international investment firms, including Chengwei Capital, NRL Capital, InterVest and Ilham Capital, to bring specialised expertise into Malaysia while connecting local semiconductor companies with global supply chains and technology networks.
Among the key initiatives highlighted was SkyeChip, a Malaysian pure-play integrated circuit (IC) design company that raised RM352 million through its initial public offering (IPO) on Bursa Malaysia’s Main Market in May 2026.
More than 60% of the IPO proceeds, amounting to RM212 million, will be allocated towards research and development of silicon intellectual property and silicon products. Meanwhile, GLICs subscribed to 15.5% of the IPO’s cornerstone allocation, reflecting institutional support for the growth of Malaysia’s IC design capabilities.
The report also highlighted Khazanah Nasional Bhd’s investment in US-based edge AI company Syntiant, which involves the establishment of a 220,000-square-foot campus in Penang. The facility will integrate advanced micro-electro-mechanical systems (MEMS) processing and AI engineering capabilities under one roof.
The project is expected to create 200 high-skilled jobs out of 800 planned positions, support an annual production capacity of 1.6 billion advanced MEMS components, and generate approximately RM118 million in local expenditure as of June 2026.
To further strengthen Malaysia’s deep-tech ecosystem, Khazanah is also supporting the Cambrian Fund, which completed a RM105 million second close as of June 2026. The fund aims to support early-stage Industrial Revolution 4.0 (IR4.0) and deep-tech companies, with plans to mentor and scale around 15 startups.
Meanwhile, Khazanah and the Retirement Fund (Incorporated) (KWAP) have committed a combined RM695 million in 2025 into strategic regional deep-tech funds through partnerships with Chengwei Capital, NRL Capital, InterVest and Ilham Capital.
These investments are designed to accelerate technology transfer, provide Malaysian semiconductor companies with greater access to funding, strengthen industry partnerships and create new opportunities within regional and global supply chains.
The MoF said the continued deployment of strategic capital by GLICs reflects Malaysia’s ambition to evolve from a major semiconductor assembly and testing hub into a more innovation-driven technology ecosystem capable of competing in higher-value segments of the global semiconductor industry.
