Malaysia has launched SemiconStart Malaysia, a national semiconductor incubation programme aimed at accelerating the growth of local and Malaysia-based chip ventures into higher-value segments of the global supply chain.
The initiative, announced by Malaysian Technology Development Corporation Sdn Bhd (MTDC), was identified under Budget 2026 and is designed to support startups through mentorship, funding access, prototyping opportunities and commercialisation support.
It was launched by Minister of Finance II Datuk Seri Amir Hamzah Azizan, who said the programme marks a shift from strategy to execution in strengthening Malaysia’s innovation ecosystem.
“Today marks an important transition from strategy to implementation. SemiconStart Malaysia represents a collective effort to strengthen pathways for innovation, commercialisation and technology development while supporting Malaysia’s ambition to create more homegrown technologies, generate greater intellectual property and build globally competitive semiconductor companies,” he said.
Amir Hamzah added that success would be measured by technologies commercialised, investments attracted and long-term opportunities created rather than policy announcements alone.
SemiconStart Malaysia is led by MTDC in collaboration with Silicon Catalyst UK and is positioned as the country’s first dedicated semiconductor venture-building programme. It focuses on helping early-stage companies overcome industry barriers such as high prototyping costs, long development cycles and complex technical validation requirements.
The programme acts as a “design-to-fab-to-market” bridge, connecting startups with technical experts, investors, fabrication partners and global industry networks. Selected companies may receive incubation support of up to RM1 million each under a structured 260-day development pathway.
It targets high-value segments including integrated circuit design, advanced materials, photonics and optics, MEMS and sensors, advanced packaging, semiconductor automation and emerging quantum-related technologies.
MTDC chairman Tan Sri Abd. Rahman Mamat said the initiative was designed to strengthen Malaysia’s pipeline of technology companies capable of competing in a highly demanding global industry.
He said semiconductor firms need more than funding to scale, highlighting the importance of technical expertise, validation support and industry networks.
The programme aligns with Malaysia’s National Semiconductor Strategy and broader ambitions under the National Science, Technology and Innovation Policy 2021-2030 to position the country as a high-technology nation by 2030.
Global semiconductor sales reached about US$791.7 billion in 2025 and are expected to continue rising, driven by demand in artificial intelligence, advanced computing, automotive technologies and telecommunications. Malaysia aims to capture a larger share of value creation as the industry moves towards the US$1 trillion mark.
The inaugural cohort comprises 10 companies, including SkyeChip Semi Sdn Bhd, GreatAsic Technology Sdn Bhd, FusionAP Sdn Bhd, nanoSkunkWorkX Sdn Bhd, Silicon X Sdn Bhd, Aphelia Sdn Bhd, Channel Microsystems Sdn Bhd, FirstChip Sdn Bhd, Kirana Semikonduktor Sdn Bhd and SMD Compound Sdn Bhd.
These firms span integrated circuit design, advanced materials, advanced packaging, radio-frequency technologies and photonic systems, and will also be assessed on intellectual property creation and local talent development.
MTDC will oversee programme delivery and ecosystem partnerships, while Silicon Catalyst UK will provide its semiconductor incubation framework and access to an international network of mentors, investors and industry partners.
The launch also included a panel session on building Malaysia’s next semiconductor champions and presentations from the participating startups.
