Malaysia semiconductor industry shifts toward high-value chip design

Malaysia is experiencing a structural shift in its semiconductor industry, moving from traditional assembly and testing toward high-value chip design and advanced manufacturing. In the first quarter of 2026, the country saw RM92.8 billion in approved investments, with the electrical and electronics (E&E) sector contributing RM6.0 billion. This growth is driving a significant demand for high-skilled talent, including integrated circuit (IC) designers and engineers.

Companies like GreatAsic Technology Sdn Bhd are actively expanding their front-end IC design operations to support artificial intelligence and electric vehicle technologies. Simultaneously, the National Semiconductor Strategy is manifesting in the financial markets. SkyeChip, a Penang-founded chip design firm specializing in silicon intellectual property and application-specific integrated circuits (ASICs), recently debuted on the Bursa Malaysia Main Market. Since its initial public offering, SkyeChip’s stock has seen substantial growth, reflecting a broader trend of homegrown technology companies moving up the global value chain.