KUALA LUMPUR: Government-linked investment companies (GLICs) have deployed RM1.4 billion in 2025 across four strategic pillars to elevate Malaysia's semiconductor value chain, according to the Ministry of Finance's (MoF) GEAR-uP Progress Report released today.
The MoF said the investment focused on scaling homegrown semiconductor companies, anchoring high-value technology transfer, multiplying the deep-tech ecosystem and forging strategic cross-border partnerships.
"Driven by the artificial intelligence (AI) boom, the global semiconductor demand is surging. While Malaysia commands about 13 per cent of the global testing and packaging market, long-term competitiveness requires capturing higher-margin, intellectual property (IP)-rich segments like integrated circuit (IC) design under Malaysia’s New Industrial Masterplan 2030 (NIMP 2030) and National Semiconductor Strategy," it said.
The report said GLICs are deploying patient capital to support domestic technology firms across their lifecycle, from early-stage venture funding to public listings, enabling homegrown semiconductor companies to expand their research and development (R&D) capabilities and compete globally.
It said GLICs are co-investing to attract global innovators to Malaysia and facilitate the transfer of high-value capabilities to the domestic semiconductor industry, while partnering local industry veterans through initiatives such as the Cambrian Fund to nurture next-generation startups and strengthen the country's deep-tech ecosystem.
The report stated that GLICs are also forging strategic partnerships with international funds, including Chengwei Capital, NRL Capital, InterVest and Ilham Capital, to facilitate the transfer of specialised expertise and connect Malaysian semiconductor players to global supply chains.
Among the initiatives highlighted was pure-play IC design firm, SkyeChip which raised RM352 million from its initial public offering (IPO) on Bursa Malaysia's Main Market in May this year, with more than 60 per cent (RM212 million) of the proceeds allocated for research and development (R&D) of silicon intellectual property and silicon products, while 15.5 per cent of the IPO's cornerstone allocation was subscribed by GLICs.
The report also highlighted Khazanah Nasional Bhd's investment in United States-based edge AI firm Syntiant, through the establishment of a 220,000-square-foot campus in Penang, integrating advanced micro-electro-mechanical systems (MEMS) processing and AI engineering under one roof, creating 200 high-skilled roles out of 800 planned positions, targeting annual production capacity of 1.6 billion advanced MEMS components and generating RM118 million in local expenditure as of June 2026.
To strengthen Malaysia's deep-tech ecosystem, Khazanah is also anchoring the Cambrian Fund, which, as of June 2026, completed a RM105 million second close to support early-stage Industrial Revolution 4.0 (IR4.0) and deep-tech firms, with 15 startups targeted for mentorship and commercial scaling.
Meanwhile, Khazanah and Retirement Fund (Incorporated) (KWAP) have committed RM695 million across strategic regional deep-tech funds in 2025 through partnerships with Chengwei Capital, NRL Capital, InterVest and Ilham Capital to facilitate technology transfer and provide Malaysian semiconductor companies with access to capital, technology partners and regional supply-chain opportunities. - Bernama
