PUCHONG, Sept 2 — Selangor is pushing for stronger linkages between chip designers and data centre, AI, mobility, and systems integration companies to retain a larger share of the semiconductor industry’s economic value, said state executive councillor for investment, trade and mobility Ng Sze Han.
He said connecting companies across the semiconductor supply chain is crucial as Selangor seeks to move beyond its traditional role in assembly, testing and packaging chips towards higher-value activities such as chip design.
“A supply chain is built when a chip designer meets a systems integrator, when a design house meets a data centre operator, when a young company finds its first serious customer.
“That is why today’s (Supply Chain Day) is Series 1 and not a one-off. We intend to bring this room together again, so this becomes the place where connections are made,” he said in his keynote address at “Supply Chain Day Series 1: Exclusive Showcase from MaiStorage” at Four Points by Sheraton here today.
The programme gathered key stakeholders from across the data centre, automotive, integrated circuit (IC) design, robotics, system integration and AI software sectors, alongside government players, providing a platform to explore emerging AI technologies, real-world industry applications, and new opportunities for cross-sector collaboration.
Ng said chip design is especially important as it is the foundation for downstream industries, including data centres, AI systems, and vehicles.
He said stronger connections between design and deployment would ensure more value stays in Selangor rather than being captured elsewhere in the supply chain.
“Selangor’s ambition is straightforward. We do not want to just assemble and test, or only host factories. We want to hold more of the chain itself, and design is where we are putting our weight.”
Ng noted that Malaysia has more than five decades of experience in the semiconductor industry and accounts for close to 13 per cent of global chip assembly, testing and packaging.
However, he said these activities represent the back-end of the semiconductor value chain, while greater value and control lie further upstream in chip design.
He said the Malaysia Semiconductor IC Design Park in Puchong represents Selangor’s effort to strengthen its capabilities in this area, while MaiStorage demonstrates how local companies may develop advanced chip design capabilities and train Malaysian engineers.
Ng added that Selangor’s 30 per cent local economy development policy promotes local content, including locally designed chips, while Ehsan Kapital, the state’s semiconductor investment fund, supports design-led sectors.
He said the state also seeks to bring chip design closer to deployment with initiatives involving autonomous logistics and other emerging technologies.
According to him, the state government will support firms by helping de-risk early deployment, facilitating introductions through Invest Selangor Bhd, research commercialisation agency Malaysian Research Accelerator for Technology and Innovation (MRANTI), and Cyberjaya’s technology hub developer Cyberview.
“Selangor’s promise is simple; we will show up, we will move at your pace, and we will keep doing the slow work of building this supply chain, link by link, and design first,” said Ng.
Supply Chain Day is an industry connection platform that features a networking lunch and dedicated one-to-one private business-matching sessions, facilitating targeted conversations among technology providers, supply chain partners, potential customers, investors, and other ecosystem stakeholders.
