This article first appeared in The Edge Malaysia Weekly on July 27, 2026 - August 2, 2026
FOR Pentamaster Corp Bhd (KL:PENTA) group executive chairman Datuk Chuah Choon Bin, Malaysia’s push into advanced semiconductor packaging is more than another government-backed industrial initiative. It represents a rare opportunity for the country to move into one of the highest-value segments of the global semiconductor supply chain before manufacturing standards become entrenched.
“The opportunity is there because the process is still not mature. Today, TSMC has its own standard, AMD has its own standard and Intel has its own standard. This is a good opportunity for Malaysia,” he says.
Unlike conventional semiconductor packaging, where manufacturing processes have largely matured, advanced packaging continues to evolve rapidly. Technologies such as 2.5D and 3D chiplet packaging are still being refined, with every leading chipmaker developing its own manufacturing flow. That creates opportunities for equipment makers capable of developing customised inspection, testing and assembly solutions alongside their customers.
It is against this backdrop that the country launched the Malaysia Advanced Packaging Consortium (MAPC) earlier this year. Backed by RM92 million in research and development grants from the Ministry of Science, Technology and Innovation (Mosti), the consortium brings together five local semiconductor companies with complementary expertise to develop domestic capabilities across the advanced packaging value chain.
The consortium comprises SkyeChip Bhd (KL:SKYECHIP), which specialises in semiconductor chip design and 2.5D/3D chiplet technology; Inari Technology Sdn Bhd, a wholly-owned subsidiary of Inari Amertron Bhd (KL:INARI), which is developing advanced packaging assembly capabilities; and Pentamaster Instrumentation Sdn Bhd, a wholly-owned subsidiary of Pentamaster that is developing automated test equipment (ATE) and high-end inspection systems.
The remaining members are FusionAP Sdn Bhd, a start-up specialising in high-end intellectual property (IP) technology transfer, and NSW Automation Sdn Bhd, which develops high-precision liquid dispensing systems with sub-10-micron accuracy.
Collectively, the five companies cover the critical building blocks of an advanced packaging ecosystem, from chip design and assembly to manufacturing equipment, precision automation and technology transfer.
For Pentamaster, the consortium is not merely a collaborative R&D programme. It is an opportunity to participate in every critical stage of advanced packaging development while acquiring manufacturing know-how that would otherwise take years to build independently.
“We are piloting the product designed by SkyeChip on the HBM4 driver. FusionAP will be working on the technology for interposers and substrates. Inari will be involved in assembly and test, while Pentamaster and NSW will provide the equipment. We have the opportunity to learn from this pilot project from assembly to test,” says Chuah.
Replicating Taiwan’s playbook
Chuah believes Taiwan’s rise as the world’s advanced packaging powerhouse offers a blueprint for Malaysia. Long before advanced packaging became mainstream, Taiwan Semiconductor Manufacturing Co (TSMC) cultivated a domestic ecosystem by supporting local equipment makers and gradually transferring manufacturing know-how across the supply chain.
“So much of the opportunity comes from the integrated device manufacturers (IDMs) themselves. TSMC funded local ATE companies,” says Chuah.
“Once the system was developed, it was consigned to the outsourced semiconductor assembly and test (OSAT) companies. At the same time, the manufacturing know-how was transferred from the IDMs to the OSATs and eventually to the equipment makers.”
Malaysia already ranks among the world’s largest OSAT hubs, but most of its operations remain concentrated in conventional packaging rather than the higher-value advanced packaging segment. Advanced packaging requires significantly higher capital expenditure, sophisticated process know-how and much more advanced manufacturing equipment.
“Malaysia’s OSAT players are still behind because advanced packaging requires huge investments. Initially, most opportunities will come from the IDMs themselves before the technology is transferred to the OSATs,” he says.
For Pentamaster, the consortium is first and foremost a technology-learning platform, although management expects it to create commercial opportunities over time. The company believes the experience gained through MAPC will complement the development of its Samurai Series of advanced packaging equipment, which includes wafer inspection, substrate inspection, silicon photonics testing and system-level testing.
Chuah sees two immediate benefits from participating in MAPC.
“There are two learning processes,” he says. “We work together within the consortium, and at the same time our local OSAT, Inari, also wants to move into advanced packaging. As we develop our Samurai equipment with other customers, Inari has the opportunity to adopt some of those technologies as it enters the advanced packaging space. It’s a mutual thing.”
By working together, consortium members can collectively build capabilities across the advanced packaging value chain instead of attempting to develop each capability independently.
That experience is particularly valuable because advanced packaging demands a far higher level of inspection and testing than conventional semiconductor manufacturing. Defects that escape detection become increasingly costly once multiple chiplets are stacked together.
“Every single inspection or testing process must be done 100% because the manufacturing process is so expensive. Normal 2D inspection systems cannot see through stacked structures anymore. That’s why we developed our X-ray inspection system that can inspect layer by layer, looking at bonding quality and alignment,” says Chuah.
Moving beyond commodity equipment
Beyond advancing Malaysia’s semiconductor ambitions, MAPC also addresses a strategic challenge facing domestic equipment makers.
For years, Malaysian automation companies have competed largely in conventional semiconductor handlers and pick-and-place systems, where competition from lower-cost Chinese manufacturers has intensified.
“We cannot just focus on pick-and-place anymore. We have to move into testing and advanced packaging, becoming a more integrated solutions provider,” says Chuah.
Whether Malaysia can replicate Taiwan’s success is uncertain. Building a competitive advanced packaging ecosystem will require sustained investment, technology transfer and close collaboration across the semiconductor supply chain.
For Pentamaster, however, MAPC is already serving its purpose. Beyond opening doors to future commercial opportunities, it provides the company with something arguably more valuable — early access to the process know-how and industry partnerships that underpin the next generation of semiconductor manufacturing.
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