By Media Selangor Team
SHAH ALAM, March 11 — The federal government has identified and supported the establishment of more than six local integrated circuit (IC) design firms in a push to develop 'Made by Malaysia' technology intellectual property (IP).
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said this is among several efforts under the third phase of the National Semiconductor Strategy (NSS), which focuses on developing front-end innovation to produce Local Champions with their own IP.
He said the government has also identified 13 local firms as having the potential to be developed to achieve the "10+100 Local Champions" target, comprising 10 companies with an annual revenue target exceeding US$1 billion (around RM4 billion) and 100 companies with a revenue target of at least RM1 billion.
"The government has also provided support to startups to encourage the participation of local companies in innovation through initiatives such as MyChipStart and SemiconStart.
"Additionally, the government is formulating a mechanism to match local IP owners with industry players and investors, to accelerate the commercialisation of research and development and subsequently drive the production of high-impact IP," he said in a written parliamentary reply yesterday.
He was responding to a question from Senator Datuk Wu Him Ven on the achievements of the third phase of the NSS and the total foreign direct investment (FDI) and domestic direct investment (DDI) in the semiconductor industry from 2020 to 2026.
The NSS is a federal initiative launched in May 2024 to strengthen Malaysia’s semiconductor ecosystem by moving the industry up the value chain, particularly through innovation, chip design and the development of local companies with their own IP.
On investment, Johari said the semiconductor sector continues to be a key contributor to manufacturing investment in Malaysia, adding that recent trends indicate increasing participation by local companies in the value chain.
Since the launch of the NSS, he said FDI has reached RM56.8 billion, while domestic investment (DI) stood at RM3.5 billion.
"The high reliance on FDI highlights the need for the government to strengthen DI to build resilience in the local industry.
"To this end, the government has provided various financing support mechanisms to reinforce the national semiconductor sector, with allocations of nearly RM2 billion for 2026."
In addition, Johari said the government requires companies receiving incentives to actively contribute to developing local talent, including through industrial training, upskilling, and retraining programmes.
Companies engaged in semiconductor manufacturing may also be considered for incentives under the Promotion of Investments Act 1986 or the New Incentive Framework (NIF), which will open for applications in the first quarter of 2026 for the manufacturing sector.
