GOV'T IDENTIFIES INTEGRATED CIRCUIT DESIGN FIRMS TO DEVELOP ‘MADE BY MALAYSIA’ IP

KUALA LUMPUR, March 10 (Bernama) -- The government has identified and is supporting the establishment of more than six local integrated circuit design firms, a critical step toward owning ‘Made by Malaysia’ technology intellectual property (IP).

The Ministry of Investment, Trade and Industry (MITI) said that 13 local companies have been identified as potential candidates for development toward the “10+100 Local Champions” target.

The “10+100 Local Champions” refer to 10 companies aiming for annual revenue exceeding US$1 billion (US$1 = RM3.93) and 100 companies targeting at least RM1 billion in revenue.

The ministry added that the government is also supporting start-ups to encourage local participation in innovation through initiatives such as MyChipStart and SemiconStart, which aim to strengthen the capabilities of local chip designers.

“The government is also developing mechanisms to match local IP owners with industry and investors to accelerate the commercialisation of research and development (R&D) and thereby drive the production of high-impact IP,” it told the Dewan Negara in a written reply posted on the Parliament’s website.

The ministry was responding to Senator Datuk Wu Him Ven’s question regarding the latest achievements of Phase Three of the National Semiconductor Strategy (NSS) and the breakdown of domestic direct investment (DDI) versus foreign direct investment (FDI) in the semiconductor sector from 2020 to 2026.

MITI said the semiconductor sector is a major contributor to manufacturing investment in Malaysia.

It elaborated that although FDI has traditionally dominated the sector, recent trends show increasing involvement by local companies in the value chain.

The ministry said semiconductor investment performance from 2020 to 2025 showed dynamic growth since the implementation of the NSS.

“Since the beginning of the NSS, FDI totalled RM56.8 billion, while domestic investment (DI) amounted to RM3.5 billion.

MITI said that the high reliance on FDI underscores the need for the government to strengthen DI to build resilience in the local industry.

“To this end, the government is providing various financing support mechanisms to fortify the country’s semiconductor sector, allocating nearly RM2 billion for 2026.

“In this context, the government has optimised the use of grant schemes to ensure financial resources are used in a more focused and high-impact manner,” it added.

-- BERNAMA