KUALA LUMPUR (Oct 9): Khazanah Nasional Bhd and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) are investing RM1.2 billion to help elevate local semiconductor companies into higher-value segments, said Prime Minister Datuk Seri Anwar Ibrahim.
Announcing the RM1.2 billion national allocation under Budget 2027, the semiconductor allocations are part of a broader push by government-linked investment companies (GLICs) under the GEAR-uP initiative, which mobilises RM25 billion in total domestic investments to build economic resilience and empower high-value sectors.
Anwar highlighted Selangor as a key beneficiary through a strategic joint fund between Khazanah and the Selangor state government to develop the state's semiconductor ecosystem.
The initiative aims to accelerate growth of the local microelectronics and integrated circuit (IC) design ecosystem, strengthening local industry capabilities to compete globally.
The capital injection comes as Malaysia seeks to move up the semiconductor value chain under the National Semiconductor Strategy (NSS).
While the country currently holds about 13% of the global market in assembly, testing and packaging (ATP), the government and industry are pushing to pivot towards higher-value, Malaysian-designed and built technology, including IC design and advanced packaging.
Within this regional landscape, Selangor and Kuala Lumpur leverage unique strengths in connectivity, infrastructure, engineering talent and regional headquarters capabilities.
In particular, Selangor benefits from strong logistics links, proximity to multi-national corporations and local initiatives like the Malaysia Semiconductor IC Design Park and Ehsan Selangor Fund in lowering capital barriers for homegrown innovators.
Separately, Penang has been mapped as the country’s technology finance centre, with Khazanah and InvestPenang establishing a RM100 million strategic investment fund to assist semiconductor and advanced manufacturing companies at the early stage of growth.