Selangor joins Khazanah Nasional and Penang in a RM150 million investment initiative to scale Malaysian semiconductor companies, strengthen IC design capabilities and help homegrown chipmakers compete globally.
The Selangor state government has committed RM50 million to the National Strategic Investment Fund. The move brings together Selangor, Khazanah Nasional Berhad and the Penang state government.
Each party will contribute RM50 million, creating an initial fund of RM150 million. The initiative aims to help Malaysian semiconductor and advanced technology companies grow. It will also support businesses moving into higher-value segments of the global chip industry.
Meanwhile, the initiative complements the Malaysia MADANI Budget 2027 announcement. Prime Minister Dato’ Seri Anwar Ibrahim announced that Khazanah and the Retirement Fund (Incorporated), or KWAP, will invest RM1.2 billion in Malaysian semiconductor companies.
Selangor has appointed the Selangor Information Technology & Digital Economy Corporation (SIDEC) and Permodalan Negeri Selangor Berhad (PNSB) to lead its participation.
Selangor and Penang Combine Semiconductor Strengths
The partnership brings together different strengths across Malaysia’s semiconductor ecosystem.
Penang has strong capabilities in semiconductor manufacturing, assembly and testing. Meanwhile, Selangor is developing its strengths in front-end integrated circuit (IC) design and chip innovation.
YB Ng Sze Han, Selangor State Executive Councillor for Investment, Trade and Mobility and Chairman of SIDEC, said the collaboration could help Malaysian semiconductor companies compete globally.
In addition, Selangor wants to connect its existing investment programmes with the National Strategic Investment Fund. This would give promising companies access to more capital as they expand.
Co-Investment Could Help Chipmakers Scale Up
SIDEC and PNSB already work together through Ehsan Kapital, which manages the Selangor Semiconductor Fund.
Now, Selangor plans to establish a formal co-investment and referral framework. The proposed arrangement would connect Ehsan Kapital with the National Strategic Investment Fund.
Through this framework, promising companies supported by the Malaysia Semiconductor IC Design Parks and Ehsan Kapital could access larger follow-on investments. As a result, they could secure more funding for commercialisation, business expansion and international growth.
“Selangor’s RM50 million commitment is more than a financial contribution. We are bringing an established IC design ecosystem, engineering talent, investment expertise and a pipeline of promising Malaysian companies to this national partnership,” Ng said.
Ultimately, the state wants to develop more Malaysian-owned semiconductor businesses. These companies would build proprietary intellectual property and technologies, including Malaysian-designed chips for global markets.
Selangor Expands Its Semiconductor Investment Pipeline
Launched in November 2025, the Ehsan Semiconductor Fund targets RM100 million in investments. It focuses on early-stage semiconductor, artificial intelligence (AI) and advanced technology companies.
The fund is a public-private partnership involving SIDEC, PNSB and Artem Ventures. Ehsan Kapital PLT serves as its general partner.
Its investment track record includes semiconductor companies SkyeChip and GreatASIC. SkyeChip listed on Bursa Malaysia’s Main Market in May 2026 and raised RM352 million. Meanwhile, GreatASIC secured US$6.9 million in pre-Series A funding.
Beyond semiconductors, Ehsan Kapital is exploring opportunities in autonomous drones, space-grade chips, smart manufacturing and industrial robotics.
These industries could create new applications for Malaysian chip design. They also offer opportunities in automation, advanced computing and connected technologies.
IC Design Parks Support Engineering Jobs
Selangor’s semiconductor ecosystem centres on the Malaysia Semiconductor IC Design Parks in Puchong and Cyberjaya. Together, the parks host 20 companies and employ 407 engineers.
At the same time, the Advanced Semiconductor Academy of Malaysia (ASEM) is helping develop local engineering talent. The academy has trained approximately 850 engineers.
According to SIDEC, trainees have secured on-the-job training or permanent employment opportunities. Starting salaries generally exceed RM5,000 per month.
Building on this progress, SIDEC is exploring a third IC Design Park. The proposed park would focus on robotics, autonomous systems and the low-altitude economy.
This expansion could create opportunities for Malaysian-designed chips in emerging industries. Potential applications include drones, autonomous mobility and industrial automation.
SIDEC is also working with Cyberview, MRANTI, Cradle and the Malaysia Digital Economy Corporation (MDEC). Together, they aim to strengthen the central region’s innovation ecosystem.
Their areas of interest include autonomous logistics, drones and electric vertical take-off and landing (eVTOL) aircraft. This technology is commonly associated with flying taxis.
Investment Targets Higher-Value Semiconductor Growth
The RM150 million National Strategic Investment Fund adds to efforts to strengthen Malaysia’s semiconductor industry.
By combining public investment, private-sector expertise and existing IC design infrastructure, the initiative aims to help local technology companies grow. It could also support the development of commercially viable products for international markets.
For Selangor, the priority is to build on its engineering talent and chip design capabilities. The state wants more Malaysian-owned companies to develop proprietary technologies and compete in higher-value segments of the global semiconductor industry.
However, the initiative’s long-term impact will depend on how effectively it directs capital to promising businesses. Supporting commercialisation and helping local chipmakers expand internationally will also be essential.
