KUALA LUMPUR: The government has pledged greater support for the semiconductor industry in the form of additional investments and industry-development programmes.
According to proposals included in Budget 2026, Khazanah Nasional Bhd and KWAP will jointly invest RM550mil into the semiconductor ecosystem to foster partnerships between local firms and multinationals.
Bank Pembangunan Malaysia Bhd will also offer RM500mil in loans under the National Semiconductor Strategy (NSS) to support high-value added activities such as R&D, especially for Malaysian firms serving the E&E ecosystem.
As a high-impact sector, the semiconductor industry will benefit from RM180mil in financing for industry-development programmes under the NIMP Industrial Development Fund. Other sectors that will also be recipients of this initiative include pharmaceuticals, AI, digital and sustainability.
The government will also allocate a RM200mil Strategic Co-Investment Fund that will provide matching capital for SMEs and mid-tier companies to strengthen supply chains in priority sectors via Equity Crowdfunding (ECF) and Peer-to-Peer (P2P) Financing platforms.
Meanwhile, an incubator programme by MTDC in collaboration with global incubators called SemiconStart will provide mentorship, access to global financing, discounted prototyping, and customer networks.
This will help to lower entry barriers faced by semiconductor startups due to costly prototyping, said the Prime Minister in his Budget 2026 speech.
