Malaysia presented half a dozen locally designed chips on Friday, and the government puts their joint annual sales potential at roughly 300 million ringgit ($74 million), according to Bloomberg.
Economy Minister Akmal Nasrullah Nasir said the government aims to take Malaysia past simply making chips, toward designing the technology and owning it, according to Malay Mail. Companies in the Malaysia Semiconductor IC Design Park developed the chips, which target uses in artificial intelligence, automotive electronics, satellites and drones.
The lineup includes SkyeChip's MARS1000, an edge-AI processor that powers robots, cameras and factory systems, and MaiStorage's aiDAPTIV+, a storage product that serves AI-enabled PCs and servers, according to Malay Mail. SiliconX presented a reprogrammable device for industrial and automotive uses that was billed as the first field-programmable gate array designed in Malaysia and Southeast Asia.
Infinecs' Maxwell is an automotive-grade power regulator. Weeroc Space's chip manages power aboard satellites and other space systems, while Alphaswift's FC Mini is a flight controller for autonomous drones.
Akmal said more work remains before the designs become products. "The next milestone is to secure customer adoption, meet industry qualification requirements and scale these innovations into successful commercial products," he said. He called the effort a long journey and said the government must also build demand for chips designed in Malaysia.
Akmal said Malaysia's partnership with Arm Holdings has given local companies a better route to cutting-edge technology for designing chips, along with the related intellectual property, according to Bloomberg. The focus is on converting that access into goods that can reach customers in large volumes, he said.
Selangor Menteri Besar Amirudin Shari said the state set up the Malaysia Semiconductor IC Design Park in Puchong in August 2024 and a second park in Cyberjaya in November 2025, according to Mediaselangor. The Cyberjaya park houses Southeast Asia's first Advanced Chip Testing Centre. The two parks are home to 407 engineers spread over 20 companies, among them firms from Taiwan, France, Japan and Australia.
Malaysia has been part of the global semiconductor industry for more than 50 years, mostly in assembly, testing and packaging, Amirudin said, according to Mediaselangor. "If a country does not adapt and move up the value chain, we stand to lose if a company decides to close shop and move their production elsewhere," he said.
SkyeChip listed on the main market of Bursa Malaysia in May, raising 352 million ringgit, Amirudin said, according to Mediaselangor. He said Weeroc Space has completed its second tape-out, the stage at which a chip design is sent for manufacturing.
On talent, Malaysia's National Semiconductor Strategy has a goal of providing training and new skills to 60,000 engineers, according to Malay Mail. The Arm On-Demand Training programme is meant to teach 10,000 Malaysians specialized skills in IC design within four years.
Akmal said federal and state governments need to work together instead of seeing investments in separate states as rivals, according to Malay Mail. When reporters raised Sarawak's recently announced gallium nitride chip, which was designed in the state, he responded that every state has its own strengths to offer.