Malaysia Launches SemiconStart
Launching the programme, Minister of Finance II Datuk Seri Amir Hamzah Azizan
Malaysia has unveiled SemiconStart Malaysia, a national semiconductor incubation programme designed to fast-track the growth of local chip startups and strengthen the country's position in the global semiconductor value chain.
Led by the Malaysian Technology Development Corporation (MTDC), the initiative was announced under Budget 2026 and aims to help emerging semiconductor companies scale through mentorship, funding opportunities, technical validation, prototyping support and commercialisation assistance.
Launching the programme, Minister of Finance II Datuk Seri Amir Hamzah Azizan said SemiconStart represents an important milestone in translating Malaysia's semiconductor ambitions into tangible outcomes.
"Today marks the transition from strategy to implementation," he said. "SemiconStart Malaysia is a collaborative effort to strengthen innovation, accelerate commercialisation and develop technologies that will create greater intellectual property, nurture globally competitive semiconductor companies and expand Malaysia's technological capabilities."
He added that the programme's success will ultimately be measured by the number of technologies commercialised, investments secured and long-term economic opportunities generated.
Developed in partnership with Silicon Catalyst UK, SemiconStart Malaysia is the country's first dedicated semiconductor venture-building programme. It is designed to help early-stage companies overcome common industry challenges, including high development costs, lengthy product qualification cycles and the technical complexities associated with bringing semiconductor technologies to market.
The initiative provides a comprehensive "design-to-fab-to-market" pathway, connecting startups with fabrication partners, technical specialists, investors and international industry networks. Selected companies may receive incubation support of up to RM1 million as part of a structured 260-day development programme.
SemiconStart focuses on several high-growth technology sectors, including integrated circuit (IC) design, advanced materials, photonics and optics, MEMS and sensor technologies, advanced semiconductor packaging, factory automation and emerging quantum technologies.
MTDC Chairman Tan Sri Abd. Rahman Mamat said the programme is designed to develop a stronger pipeline of Malaysian semiconductor companies capable of competing on the global stage.
"Access to capital alone is not enough for semiconductor startups," he said. "Companies also require technical expertise, product validation, strategic partnerships and access to international markets. SemiconStart brings these critical elements together within a single ecosystem."
The initiative supports Malaysia's National Semiconductor Strategy and aligns with the country's National Science, Technology and Innovation Policy 2021-2030, which aims to position Malaysia as a leading high-technology economy by the end of the decade.
With global semiconductor sales reaching approximately US$792 billion in 2025 and forecast to surpass the US$1 trillion milestone in the coming years, demand continues to accelerate across artificial intelligence, high-performance computing, automotive electronics, telecommunications and industrial automation. Through SemiconStart, Malaysia is seeking to capture a greater share of this expanding market by fostering innovation-led companies capable of delivering higher-value technologies.
The programme's inaugural cohort includes ten Malaysian semiconductor startups: SkyeChip Semi, GreatAsic Technology, FusionAP, nanoSkunkWorkX, Silicon X, Aphelia, Channel Microsystems, FirstChip, Kirana Semikonduktor and SMD Compound.
Collectively, these companies are developing technologies spanning chip design, radio frequency solutions, photonics, advanced packaging and semiconductor materials. Their progress will be assessed against key performance indicators including intellectual property generation, technology commercialisation and the development of highly skilled local talent.
MTDC will oversee programme delivery and industry collaboration, while Silicon Catalyst UK will contribute its globally recognised semiconductor incubation framework, providing participants with access to an extensive international network of mentors, investors and technology partners.
The launch concluded with a panel discussion exploring the future of Malaysia's semiconductor ecosystem, alongside presentations from the inaugural startup cohort showcasing the country's next generation of semiconductor innovators.
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