KUALA LUMPUR (Dec 27): Khazanah Nasional Bhd announced on Friday that it has invested in private equity Cambrian Fund and California-based artificial intelligence (AI) firm Syntiant Corp.

In a statement, the sovereign wealth fund said the investment was made through its RM1 billion Dana Impak fund, which aims to drive greater growth and innovation in Industrial Revolution 4.0 (IR4) technologies and capacity development, and boost research and development (R&D) in AI and semiconductor technologies.

“Through Khazanah’s Dana Impak investments, the Cambrian Fund is aligned with the government’s efforts in fostering greater growth, innovation, local talent development and integration into the global supply chain, while enhancing international market ties and creating opportunities for Malaysian companies to expand globally,” said Khazanah managing director Datuk Amirul Feisal Wan Zahir.

The Cambrian Fund was set up in July by the founders of Penang-based automated test equipment manufacturer ViTrox Corp Bhd (KL:VITROX) in partnership with Southern Capital Group, a leading regional private equity firm focused on small and medium enterprises (SMEs). ViTrox's founders are its president and group chief executive officer Chu Jenn Weng,  executive vice-president Steven Siaw Kok Tiong, and executive director Yeoh Shih Hoong.

The Cambrian Fund, which achieved a first closing of RM100 million with Khazanah as one of its anchor investors, is dedicated to supporting entrepreneurs and SMEs focusing on IR4 technologies, such as machine vision, AI and robotics.

Syntiant Corp, meanwhile, is recognised globally as a leader in providing innovative hardware and software solutions for edge AI deployment, said Khazanah. Syntiant’s purpose-built silicon and machine learning models are deployed across various consumer and industrial use cases, from earbuds to automobiles.

“Syntiant's commitment to establish a world-class AI R&D centre in Malaysia is a key strategic benefit of Khazanah’s investment. The centre will drive technological innovation and development, contributing to Malaysia's ambition to move up the semiconductor value chain as well as participate in the growing global AI industry,” Amirul said.

Investing in Syntiant, he said, will enhance the nation’s technological capabilities while creating high-skilled, high-income job opportunities for Malaysians.

"By establishing a world-class AI R&D centre in Malaysia, we are not only expanding our footprint but also investing in the country’s vibrant technological ecosystem," said Syntiant CEO Kurt Busch. "This investment marks a pivotal moment for Syntiant, as we integrate MEMS (micro electromechanical systems) microphone technology into our AI-driven solutions to bring about the next generation of intelligent interfaces.”

Partnering with Khazanah and several leading technology investors, Syntiant will use the fundraising proceeds to acquire 100% of Knowles Corp's consumer MEMS microphones (CMM) division, which has significant assembly and testing operations in Malaysia.

"The acquisition will allow Syntiant to offer global customers a complete turnkey solution for always-on audio and speech applications. In 2023, the CMM division employed over 700 people in Malaysia, who will benefit from the value creation of this investment," said Khazanah.