This semiconductor park is at the heart of Malaysia’s push for local chip innovation

KUALA LUMPUR, 29 JULY 2026 —

KUALA LUMPUR — Malaysia is positioning itself as a hub for semiconductor intellectual property (IP) with the launch of the Malaysia Semiconductor IC Design Park, a US$250 million initiative aimed at transitioning the country from chip assembly to high-value design and innovation.

At the heart of this transformation is the Malaysia Semiconductor IC Design Park, spearheaded by the Selangor government through the Selangor Information Technology & Digital Economy Corporation (Sidec) and supported by the federal Ministry of Economy. The 15,000 sq. ft. park is designed as a centralized innovation ecosystem, offering co-working spaces, advanced chip design infrastructure, and specialized labs equipped with post-silicon testing, advanced emulation systems, and packaging tools.

Companies at the park gain access to industry-leading infrastructure, including Electronic Design Automation (EDA) tools, IP services, and Multi-Project Wafer (MPW) services. Sidec subsidizes up to 100% of essential IC design tools and equipment, while office rent, utilities, and internet are subsidized for the first three years.

The park also facilitates access to private and public funding, with investors including Selangor Semiconductor Fund (SSF), Artem Ventures, and Permodalan Negeri Selangor Berhad (PNSB) contributing US$23.7 million (RM100 million) to support early-stage ventures.

The park’s focus on talent development is underscored by the Advanced Semiconductor Academy of Malaysia (ASEM), which launched the Arm On-Demand Training Programme in September 2025. The first cohort of 400 engineers—drawn from over 40 universities and 80 companies—is undergoing training in Arm Cortex processors, embedded systems, and System-on-Chip (SoC) development. ASEM aims to train 20,000 engineers annually, fulfilling 30% of the National Semiconductor Strategy’s talent key performance indicator (KPI).

Angel Low, General Manager of ASEM, emphasized the program’s role in ensuring Malaysia’s competitiveness in the global semiconductor value chain. “Our mission is to identify, train, and place Malaysia’s brightest engineering minds in roles where they can make an impact—both locally and globally,” she said. Top candidates are matched with park tenants, while others are connected to leading semiconductor firms such as Intel, Infineon, Texas Instruments, and Micron.

The initiative aligns with Malaysia’s broader National Semiconductor Strategy, which offers capital expenditure allowances and income tax exemptions for up to 10 years. The park’s advanced emulation system, set to launch soon, will further bolster AI chip development by enabling rapid verification and system-level prototyping before fabrication.

Regional semiconductor players are taking notice. Industry analysts highlight Malaysia’s strategic location and growing talent pool as key advantages in attracting investment. “Malaysia’s focus on IP development and talent upskilling positions it well to compete with established hubs like Singapore and Taiwan,” said a spokesperson from Sidec.

The park’s impact extends beyond Malaysia, with stakeholders noting potential spillover benefits for neighboring countries in Southeast Asia. “As Malaysia strengthens its semiconductor ecosystem, it could serve as a model for regional innovation hubs, fostering collaboration and supply chain diversification,” said an industry observer.

Looking ahead, ASEM plans to expand the Arm On-Demand Training Programme with multiple cohorts annually, addressing talent gaps in AI, data centers, and advanced packaging. The initiative culminates in the SDEC 2025 Recruitment Day, scheduled for October 8–11, 2025, at the Kuala Lumpur Convention Centre and Grand Hyatt KL. The event will connect job seekers with opportunities in the digital economy and smart city sectors, offering a pathway into Malaysia’s semiconductor breakthroughs.

For aspiring engineers and professionals, the park represents more than just a workspace—it is a gateway to shaping the future of Malaysia’s tech-driven economy. With government backing, private investment, and a focus on homegrown innovation, the Malaysia Semiconductor IC Design Park is poised to redefine the country’s role in the global semiconductor landscape.

Related: Intel · Kuala Lumpur