DNeX and CGP reach global settlement to resolve shareholder disputes, backing SilTerra’s expansion plans

KUALA LUMPUR, 11 OCTOBER 2026 —

DNeX and Chinese fund settle SilTerra shareholder dispute, clearing path for AI-driven semiconductor expansion

Cyberjaya, 8 October 2026 – Dagang NeXchange Berhad (DNeX) has resolved a long-running shareholder dispute with Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) (CGP Fund) and its affiliates, ending all outstanding arbitration and litigation over SilTerra Malaysia Sdn Bhd (SilTerra). The settlement, announced today, was formalised as a consent order in the High Court of Malaya in Kuala Lumpur, with no compensation exchanged beyond reimbursement of legal costs.

The agreement preserves SilTerra’s existing shareholding structure and removes legal obstacles that had clouded the semiconductor foundry’s strategic direction. DNeX and CGP Fund, which together hold stakes in SilTerra, now stand fully aligned on the company’s long-term growth trajectory, allowing SilTerra to accelerate its expansion in high-value semiconductor segments—particularly silicon photonics, a critical enabler for AI data centres and next-generation optical interconnects.

The dispute, which spanned multiple years, had no operational impact on SilTerra, whose daily operations, customer contracts, workforce, and partnerships remained unaffected throughout. With the legal impasse resolved, DNeX is now positioned to support SilTerra’s next phase of growth, including potential capital injections to strengthen its technological capabilities. The settlement also underscores DNeX’s commitment to maintaining SilTerra’s status as a globally relevant semiconductor foundry, leveraging Malaysia’s strategic position in the industry.

Vinie Chong Pui Ling, Interim Officer-in-Charge, Group Chief Operating Officer, and Group Chief Financial Officer of DNeX, stated: “DNeX and CGP Fund remain fully aligned in our commitment to SilTerra and its next phase of growth, including through further capital injection where required. With the shareholder matter now resolved, DNeX can focus on supporting SilTerra to capture the opportunities ahead and ultimately unlock greater value from our investment in the company.

As AI accelerates demand for advanced semiconductors and high-speed optical connectivity, SilTerra is well positioned to capture these opportunities, particularly through its silicon photonics capabilities and collaborations in next-generation optical interconnect technologies. With aligned shareholders, a seasoned management team, and a clear growth agenda, our ambition is for SilTerra to build on its Malaysian roots and further strengthen its position in the global semiconductor ecosystem.”

SilTerra’s focus on silicon photonics—an emerging technology that integrates optical and electronic components on a single chip—positions it to capitalise on the surging demand for AI infrastructure. The company’s collaborations in next-generation optical interconnects, which enable faster data transmission in data centres, align with global trends toward high-performance computing. The settlement removes a key barrier to SilTerra’s ability to secure additional funding and expand its market share in this niche but rapidly growing segment.

For DNeX, the resolution of the shareholder dispute marks the end of a prolonged legal battle that had diverted attention from SilTerra’s core business. The company’s shares, which had faced volatility amid the dispute, are now expected to benefit from renewed investor confidence in SilTerra’s growth prospects.

Analysts had previously highlighted the importance of shareholder alignment for SilTerra’s ability to attract further investment, particularly as the semiconductor industry undergoes a shift toward advanced packaging and optical technologies.

The settlement also carries broader implications for Malaysia’s semiconductor sector, which has increasingly positioned itself as a hub for high-tech manufacturing. SilTerra, a joint venture between DNeX and CGP Fund, has been a key player in Malaysia’s push to develop a domestic semiconductor ecosystem, particularly in specialised areas like silicon photonics.

The resolution of the dispute is likely to reinforce Malaysia’s attractiveness to foreign investors seeking to establish or expand semiconductor operations in the region, given the country’s established infrastructure, skilled workforce, and government incentives.

With the legal hurdles removed, SilTerra is now free to execute its growth strategy without interruption. The company’s focus on silicon photonics—an area where Malaysia has made significant strides—could further solidify its role in the global supply chain for AI-driven technologies. The settlement also paves the way for potential collaborations with international partners, particularly in the development of next-generation optical interconnects, which are critical for high-speed data transmission in AI and cloud computing applications.

The next phase for SilTerra will likely involve scaling its production capacity, securing additional funding, and deepening its partnerships with technology leaders in the semiconductor space. DNeX’s commitment to supporting SilTerra’s expansion, including through potential capital injections, suggests that the company is prepared to back its investment with further resources to ensure long-term success.

The resolution of the shareholder dispute thus marks a turning point for SilTerra, clearing the path for it to fully realise its potential in the rapidly evolving semiconductor market.