The Selangor state government has launched the Selangor Semiconductor Fund, also known as Ehsan Capital, to drive Malaysia’s semiconductor and technology ecosystem.
A collaboration between the Selangor Information Technology and Digital Economy Corporation (Sidec), Permodalan Negeri Selangor Bhd (PNSB) and Artem Venture Fund, the initiative aims to raise over RM100 million and begin operations this month.
Selangor Menteri Besar Datuk Seri Amirudin Shari said the fund will invest in at least seven local startups focused on semiconductor design and technology.
“This is more than a financial instrument — it’s a long-term commitment to nurture local expertise in research, development and design,” he said at the launch of the Malaysia Semiconductor Integrated Circuit (IC) Design Park 2, officiated by Prime Minister Datuk Seri Anwar Ibrahim.
The new IC Design Park 2 in Coplac9 Cyberjaya follows the success of the first park in Puchong, which drew interest from global semiconductor players. It will feature the Advanced Semiconductor Academy of Malaysia and the region’s only world-class chip testing centre, offering advanced design, prototype and verification facilities.
Amirudin added that with federal support through the ARM Design Token initiative, local chip firms could grow rapidly and be listed within the next few years, boosting investor confidence.
He also highlighted the state’s Local Economy Development Policy (LED), which mandates 30% local content for new data centre investments to ensure Malaysian firms and talent benefit from the industry’s expansion.
