MALAYSIA is taking a bold step to climb higher in the global semiconductor arena, with the Federal Government doubling down on efforts to nurture homegrown innovation through the MyChipStart programme.
Launched as part of the nation’s broader industrial transformation agenda, the initiative aims to cultivate a new generation of local integrated circuit (IC) design companies, positioning Malaysia beyond its long-standing strengths in assembly, testing and packaging, and firmly into the high-value upstream segment of semiconductor design.
Investment, Trade and Industry Deputy Minister Sim Tze Tzin, who is also the Bayan Baru MP, said MyChipStart is anchored in two key national blueprints namely the National Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS).
“These frameworks are designed to future-proof Malaysia’s industrial landscape by shifting focus towards high-impact, knowledge-driven sectors such as semiconductor and IC design,” he said during the programme’s launch at Universiti Sains Malaysia (USM) in Bukit Jambul today.
Sim highlighted that IC design remains one of the most challenging yet rewarding frontiers in the semiconductor ecosystem.
“The field demands not only highly specialised talent but also significant capital investment particularly for electronic design automation (EDA) tools and the costly process of bringing a chip from concept to prototype, which can soar to as much as US$100 million (RM398 million).
“These barriers have historically made it difficult for startups to enter the space. MyChipStart is designed to break down those barriers,” he said.
He explained that under the upcoming 13th Malaysia Plan (13MP), the programme will receive an annual allocation of approximately RM17 million.
“The funding will support companies across the entire innovation pipeline from ideation and design to validation and testing, ensuring that promising ideas are not lost due to resource constraints,” Sim said.
He explained that assistance would include access to costly EDA software and shared facilities at Penang Silicon Design @5km+ in Bayan Lepas.
He said these tools would be centrally located and shared among qualified companies, rather than being individually owned, to ensure efficient use of resources and that firms would undergo an evaluation process, including proof of concept and market viability, before receiving support.
“Currently, Malaysia has only around 20 to 30 IC design companies, a figure that underscores the urgency of building a stronger domestic ecosystem,” he said.
Sim emphasised that MyChipStart goes beyond financial assistance; it is a strategic national intervention aimed at catalysing domestic investment, strengthening the semiconductor supply chain, and ultimately creating globally competitive Malaysian tech champions.
“Our ambition is clear. We want to see more Malaysian companies owning their intellectual property (IP) and competing on the world stage,” he said.
He added that while foreign direct investment (FDI) has long been a pillar of Malaysia’s semiconductor success, the country must now pivot towards greater IP ownership to secure long-term economic resilience.
“By owning the IP, we ensure that the value created by Malaysian talent remains within our borders and thus, driving sustainable growth and reinforcing Malaysia’s position in the global semiconductor industry,” Sim said.
Story by Riadz Akmal
Pix by Siew Chia En