Malaysia’s new SemiconStart programme aims to build high-value semiconductor ventures, backed by RM1 million grants, to move the nation up the global supply chain.
KUALA LUMPUR: Malaysia is strengthening its semiconductor ecosystem amid geopolitical uncertainties, with semiconductors now increasingly viewed as a matter of national interest.
Deputy Minister of Science, Technology and Innovation Datuk Mohammad Yusof Apdal said that the global environment is rapidly evolving, with value increasingly concentrated at the front end of the supply chain rather than back-end activities.
“Countries that build strength in these areas will not only capture greater value, but also shape the future of industry.
“That is why moving further up the value chain is no longer optional; it is central to Malaysia’s long-term competitiveness, resilience, and economic relevance in this sector,” he said in his speech at the SemiconStart Malaysia pre-launch ceremony held at the World Trade Centre here today.
In addition, he said that the National Semiconductor Strategy (NSS), reinforced by Budget 2026, shows that the country is taking deliberate steps to strengthen its position in higher-value segments of the ecosystem, including integrated circuit (IC) design, advanced packaging, and other upstream capabilities for long-term competitiveness.
“This reflects a national commitment, not only to participate in the semiconductor industry, but also to build impactful capabilities in the areas that will shape its future.
“However, policy alone is not sufficient. What matters is execution, whether we can translate intent into real companies, real technologies, and real capabilities,” he said.
Hence, Mohammad Yusof said SemiconStart Malaysia represents a structured and deliberate effort to build something Malaysia has long needed — a consistent and credible pipeline of semiconductor ventures.
“This is not just about supporting startups, it is about building Malaysia’s capability to develop semiconductor technologies at the highest level.
“It is about building companies that can develop technology, generate intellectual property, create high-value talent, and contribute meaningfully to Malaysia’s long-term industrial strength,” he said.
The programme is implemented by Malaysian Technology Development Corporation (MTDC) in collaboration with Silicon Catalyst UK through a 260-day incubation track, providing participating companies with access to grants of up to RM1 million per company, advanced design tools, industry mentorship, and global investor networks.
Apart from funding, companies will undergo rigorous technical and commercial assessments coordinated by Silicon Catalyst’s United Kingdom and United States teams.
Focus areas include IC design, sensor technologies, photonics, Micro-Electro-Mechanical Systems, quantum technologies, and advanced semiconductor materials, all of which have been identified as strategic, high-value segments under the NSS.
Malaysia currently accounts for about 13 per cent of the global semiconductor testing and packaging market and remains among the world’s largest semiconductor exporters.
The full launch of SemiconStart Malaysia is expected later this year, with applications opening in April.
The pre-launch ceremony was also attended by MTDC chairman Tan Sri Abd Rahman Mamat.
