THE Ministry of Investment, Trade and Industry (MITI) is stepping up efforts to develop its own semiconductor intellectual property by supporting the establishment of more than six local integrated circuit design companies, a move seen as crucial to creating technology that is genuinely “Made by Malaysia”.
The initiative forms part of a broader strategy led by the MITI to strengthen the country’s role in the global semiconductor value chain while expanding domestic technological capabilities.
According to the ministry, 13 additional local companies have also been identified as potential candidates for development under the government’s “10+100 Local Champions” target.
The programme aims to cultivate 10 Malaysian technology companies capable of generating annual revenue exceeding US$1 billion, alongside another 100 firms with revenue targets of at least RM1 billion.
The ministry said the government is also supporting start-ups in order to encourage greater participation by Malaysian companies in semiconductor innovation through initiatives such as MyChipStart and Semiconstart, which are designed to strengthen domestic chip design capabilities.
“The government is also formulating mechanisms to match local IP owners with industry and investors, in order to accelerate the commercialisation of research and development (R&D) and subsequently drive the creation of high-impact IP,” the ministry said in a written reply published on the Parliament website.
The response was issued to a question from Senator Wu Him Ven regarding the latest progress of the third phase of the National Semiconductor Strategy and the breakdown of domestic direct investment compared with foreign direct investment between 2020 and 2026.
The ministry noted that the semiconductor sector remains a major contributor to Malaysia’s manufacturing investment, even though it has historically been dominated by foreign direct investment.
However, recent trends indicate increasing participation by local companies across the industry’s value chain.
Investment performance in the semiconductor sector between 2020 and 2025 has shown strong growth since the launch of the National Semiconductor Strategy, with foreign direct investment reaching RM56.8 billion while domestic investment totalled RM3.5 billion.
The relatively high reliance on foreign capital, the ministry said, underscores the importance of strengthening domestic investment in order to improve the long-term resilience of the national semiconductor industry.
“To support this effort, the government is providing a range of financing mechanisms to strengthen the country’s semiconductor sector, with nearly RM2 billion allocated for 2026,” the ministry said.
“In this context, the government has optimised the use of grant schemes to ensure financial resources are utilised in a more focused and high-impact manner.” - March 11, 2026
