Malaysia’s eight firms lead NSS push into chip design, packaging and AI

KUALA LUMPUR, 23 SEPTEMBER 2026 —

Malaysia’s semiconductor ecosystem is shifting beyond assembly with eight companies now driving the National Semiconductor Strategy (NSS) into higher-value chip design, advanced packaging and AI hardware—backed by RM63 billion in investments in less than a year.

The government’s RM25 billion fiscal commitment under the NSS, launched in May 2024, targets creating at least 10 Malaysian firms generating up to RM10 billion in revenue from design and advanced packaging, alongside 100 smaller companies aiming for RM1 billion each. These companies—spanning packaging, testing, design and automation—are executing the strategy’s vision of moving Malaysia up the value chain.

Inari Amertron is expanding beyond its profitable RF chip packaging business, using its RM2.14 billion cash reserve to develop advanced packaging for AI hardware. The company’s shift reflects the growing demand for stacked and precision-connected chips in data centres, positioning it as a key player in next-generation AI hardware.

ViTrox, an MD status company, specialises in defect detection using X-ray and camera-based inspection systems. Its technology is critical for AI and next-gen processor manufacturing, helping to mitigate costly errors in increasingly intricate chip production lines.

SkyeChip, Malaysia’s first homegrown chip designer, recently launched the MARS1000, a 7nm edge AI processor, and raised RM352 million through a Bursa Main Market listing. With over 300 engineers and more than 100 patents filed, the Penang-based company exemplifies the NSS’s goal of fostering indigenous design capabilities.

Greatech Technology has repurposed its semiconductor automation expertise for EV battery production, where precision tolerances mirror chip manufacturing demands. Its systems now span EVs, solar energy, medical devices and semiconductors, broadening Malaysia’s high-tech footprint.

Pentamaster Corporation focuses on functional testing for semiconductors and EVs, pivoting from automotive to AI and medical manufacturing. With a third production plant under development and design centres planned in California and Munich, the company is expanding globally amid rising demand for power electronics testing.

D&O Green Technologies, based in Melaka, holds a 7% global market share in automotive LED packaging, supplying high-performance LEDs for vehicle lighting systems. Its components are distributed across key global markets, including China, Japan, Europe and North America, aligning with the electrification trend driving demand for advanced components.

Aurelius Technologies provides electronic manufacturing services (EMS), including printed circuit board assemblies (PCBAs) and IoT-linked modules, for industrial systems and semiconductor-adjacent applications. Its expansion into multicomponent semiconductor modules underscores Malaysia’s growing role in niche electronics.

QES Group, an MD status company, acts as a critical access layer, sourcing, integrating and maintaining inspection and test equipment for semiconductor factories. Its role in reducing downtime highlights the ecosystem’s reliance on support infrastructure.

Coraza Integrated Technology and UWC Berhad, both Penang-based, supply precision-machined metal components essential for equipment makers like ViTrox and Pentamaster. Their work ensures the physical foundations for advanced semiconductor tools.

The NSS’s success hinges on this interconnected ecosystem. According to the source, "The Pioneers"—like SkyeChip and Inari—set industry standards, while "The Diversifiers"—such as Greatech and Pentamaster—extend capabilities into new sectors. "The Enablers"—including QES and precision machinists—ensure smaller firms can scale. Together, they are turning Malaysia’s semiconductor ambitions into tangible growth, with investments already surpassing RM63 billion in under a year.

The strategy’s focus on fostering high-value digital industries through the Malaysia Digital (MD) initiative further strengthens Malaysia’s competitiveness in the global digital economy. The government’s commitment and the growing ecosystem of innovative Malaysian technology companies are key to achieving the NSS’s goals.