GEORGE TOWN: More than 20 integrated circuit (IC) design startups are set to benefit from the MyChipStart programme under the New Industrial Master Plan 2030 and the National Semiconductor Strategy.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the strategic shift towards upstream activities, particularly IC design, would help Malaysia move beyond its traditional strengths in downstream segments such as packaging and testing.
He said RM17mil would be allocated annually over a five-year rolling plan under the 13th Malaysia Plan to support these startups in scaling up.
The programme will provide access to costly electronic design automation (EDA) tools, talent development and funding for critical stages such as validation and testing, rather than fully financing chip production.
“For decades, we have been concentrated in backend processes like packaging and testing. Now, we want to move into IC design, which is far more complex and capital intensive.
“Malaysia has only about 20 to 30 IC design startup companies. Through the MyChipStart programme, we want to support these startups and help them bring their projects to life,” he told reporters after the launch of the programme at Sains@USM here yesterday.
Sim said IC design requires significant investment in EDA tools, specialised software, skilled talent and high-risk development processes, making it a challenging space for startups to enter.
He noted that developing a single IC prototype could cost as much as US$100mil (RM396.8mil), while EDA tools alone can range from RM2.5mil to RM5mil each.
He added that government support would be selective, with companies required to undergo rigorous evaluation, including proof of concept, business viability and market potential.
“We cannot fund everyone. Startups must demonstrate strong fundamentals first,” he said.
He said companies under MyChipStart are currently at various stages of development, from early-stage ideas to advanced prototypes, with support tailored accordingly.
“For more mature firms, assistance may focus on validation and testing. For those at the idea stage, it may involve access to design tools and early-stage development,” he said.
Describing the initiative as ambitious but necessary, Sim said Malaysia must act now to avoid being left behind in the global semiconductor race.
Earlier, Collaborative Research in Engineering, Science & Technology chief executive officer Jaffri Ibrahim said MyChipStart was developed to address long-standing structural barriers that have slowed innovation in the country’s semiconductor design ecosystem.
Jaffri noted that early-stage design companies often struggle to access critical resources such as EDA tools, multi-project wafer (MPW) platforms and market opportunities due to high costs and limited scale.
He said startups are often unable to negotiate effectively for such resources, while post-silicon processes, including testing, packaging and reliability support, remain fragmented and costly.
“The journey from prototype to market is still underdeveloped, with limited pathways to customers, partners and manufacturing opportunities,” he added.
Jaffri described these challenges as “structural friction points” thatwould continue to hinder Malaysia’s progress in semiconductor design innovation.
MyChipStart was created as a comprehensive platform to systematically remove these barriers.
Under the initiative, demand for key tools and resources is aggregated at the national level to enable shared access to EDA tools and MPW platforms, making participation more affordable for early-stage companies.
