By Danial Dzulkifly
SHAH ALAM, July 5 — Malaysia should avoid going head-on with established chipmakers in high-end AI markets and instead focus on modular design, chiplet platforms, and edge computing for smart applications, says semiconductor veteran Chiang Shang-Yi.
Speaking in an exclusive interview with the Malaysian media, the newly appointed Selangor Information Technology and Digital Economy Corporation (Sidec) strategic adviser said Malaysia has a unique opportunity to carve out a competitive niche in the Artificial Intelligence of Things (AIoT) space.
He said this area remains relatively untapped, unlike the data centre and graphics processing unit markets that have long been dominated by semiconductor giants.
“You don’t want to compete with somebody who’s already been doing it for 20 years.
“If you want to be in AI, look at edge computing or specific applications of AI, like smart homes, cities, or automotive, that are still emerging,” the former Taiwan Semiconductor Manufacturing Co (TSMC) executive said in the interview held at the Integrated Circuit (IC) Design Park 1 in Puchong recently.
The park is managed by Sidec, the state agency spearheading Selangor’s ambition to pivot into IC design and higher-value semiconductor products.
Chiang, who previously led research and development at TSMC, said his role in Sidec is to offer his perspective on how Malaysia and Selangor can establish a niche in the industry, while also advising on innovation and the development of viable business models.
He advised Malaysia to drive innovation not only through technology, but also by developing business models that help local companies scale.
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Newly appointed Selangor Information Technology and Digital Economy Corporation (Sidec) strategic adviser Chiang Shang-Yi is interviewed by Media Selangor at the Sidec headquarters in Subang Jaya on July 3, 2025. — Picture by REMY ARIFIN/MEDIA SELANGOR[/caption]
He proposed the creation of a national chiplet-based platform to support thousands of design startups similar to the “Lego for semiconductors” concept — a technique of building advanced chips by integrating different materials and functionalities like Lego bricks, using a method called heterogeneous integration.
“If you design an application-specific IC chip, it takes one or two years. But if I use the Lego approach, I can deliver your product in six months. You don’t need to hire 50 engineers. One team can serve thousands of startups.”
The platform, he explained, could house reusable chiplets and offer advanced packaging services, drastically reducing time-to-market, design costs, and reliance on specialist talent.
Chiang said instead of trying to help 100 companies build their own design houses, a centralised platform could support thousands, amplifying the impact on the national economy, job creation, and sector growth.
He added that Moore’s Law — which observes that computing power doubles every two-ish years — once drove exponential growth in the industry, but has since slowed, highlighting the need for systemic-level innovation.
“The industry used to depend on Moore’s Law, but now we need to look at architecture, platform design, and packaging innovation.”
Chiang warned that without a deliberate innovation agenda, Southeast Asian countries risk falling behind in a fast-converging market.
“Innovation will continue, but it will not be anywhere as fast as it used to be,” he said, adding that Malaysia must move quickly to define its niche.
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A woman walks past an officiation plaque at the launch of Malaysia’s first IC Design Park at the Puchong Financial Corporate Centre on August 6, 2024. — Picture by MOHD KHAIRUL HELMY MOHD DIN/MEDIA SELANGOR[/caption]
New design frontier
On the broader opportunity, Chiang pointed to the surge in AI-related devices and applications, from smart appliances to robotics, that require customised chip solutions and seamless software-hardware integration.
This, he said, will fuel demand for agile, application-specific design houses.
“People are just starting to migrate from general AI to application-specific AI. You’re looking at personal devices, cars, smart cities, each with hundreds of different applications. This means there is a huge demand for designers. This is your chance!”
However, he said, Malaysia’s relative lack of legacy in AIoT may not necessarily be a disadvantage, as the rest of the world is also just racing into the space.
Previously, Sidec chief executive officer Yong Kai Ping had said the Selangor government is looking to launch an IC design park every year until 2028, with the one in Puchong already at full capacity.
The park will provide access to design tools, servers, as well as intellectual property and training programmes to support local and international IC design companies.
It is set to generate over 300 high-value jobs for IC design engineers in its first year.
The second IC design park is in the works, with Cyberjaya being touted as a possible location.
