KUALA LUMPUR (May 16): Penang-based integrated circuit designer SkyeChip Bhd (KL:SKYECHIP) is set to debut on Bursa Malaysia’s Main Market on May 20 after drawing strong investor demand for its initial public offering (IPO), as the company positions itself to ride the artificial intelligence (AI)-driven semiconductor boom through ownership of silicon intellectual property (IP).

The IPO was oversubscribed by 95.03 times and notably contains no offer-for-sale component, allowing co-founders Datuk Fong Swee Kiang and Teh Chee Hak to retain their stakes after listing — a structure that signals long-term confidence in the business.

Unlike wafer fabricators or contract chip design houses, SkyeChip focuses on semiconductor IP, developing reusable design blocks embedded in processors, AI accelerators and high-performance computing chips.

That places the company in a structurally higher-margin segment of the semiconductor value chain, where recurring licensing revenue can be generated as IP is deployed across multiple chip generations. Once integrated into a customer's architecture, semiconductor IP tends to become deeply embedded due to the high costs associated with redesigns, qualification cycles and system-level validation.

Globally, the sector is dominated by established names such as Synopsys Inc and Cadence Design Systems Inc, underscoring the technical barriers and ecosystem scale required to compete in the space.

SkyeChip’s portfolio centres on memory interface IP and network-on-chip technologies tailored for AI and high-performance computing (HPC) applications, where demand for higher bandwidth, lower latency and increasingly complex chip architectures continues to accelerate.

At its IPO price of 88 sen, SkyeChip is expected to list with a market capitalisation of RM1.58 billion.

The company is also among three Malaysian chip design firms to recently receive offer letters granting access to semiconductor design platforms from Arm Holdings plc, alongside Oppstar Bhd (KL:OPPSTAR) and GreatAsic Technology Sdn Bhd.

The initiative, formalised through the Malaysian Investment Development Authority last year, forms part of Malaysia’s broader ambition to evolve from a “Made in Malaysia” manufacturing base into a “Made by Malaysia” innovation economy capable of producing globally competitive semiconductor companies.

For SkyeChip, access to Arm’s ecosystem could accelerate its expansion into AI and HPC silicon.

In an interview with The Edge, Fong and Teh said the company’s long-term strategy draws inspiration from British author JK Rowling and US chipmaker Broadcom Inc, reflecting an emphasis on building reusable IP architectures and a scalable semiconductor platform business.

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