SemiconStart Programme Set To Boost Electrical And Electronics Sector -- MSIA
KUALA LUMPUR, Oct 11 (Bernama) — The creation of SemiconStart, a new incubator programme for semiconductor startups is seen as a positive and timely initiative to help build Malaysian champions in the electrical and electronics (E&E) sector, said the Malaysia Semiconductor Industry Association (MSIA).
MSIA said this aligns with the national semiconductor strategy (NSS) to create 110 Malaysian champions.
It noted that the programme’s effectiveness will depend heavily on the scope and reach of the global incubator partner, particularly in providing access to the foundry process design kit and multi-product wafer for advanced node designs, outsourced semiconductor assembly and test access, and design infrastructure support.
“These resources are typically inaccessible to startups. Obtaining them through the incubator will be a major equaliser. However, clarity is needed on whether the incubator will also provide packaging solutions to enable full prototype development once wafers return from fabrication,” MSIA said in a statement.
On Friday, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia will launch the incubator programme by the Malaysian Technology Development Corporation (MTDC) in collaboration with global incubators to address entry barriers often faced by semiconductor startups due to high prototyping costs.
MSIA also said the RM7.9 billion allocation for technical and vocational education and training (TVET), including RM650 million focused on artificial intelligence, electric vehicle and semiconductor training, reflects the government’s recognition of the talent challenges facing Malaysia’s high-tech industries.
Meanwhile, the introduction of the RM200 million Strategic Co-Investment Fund and RM180 million NIMP Industrial Development Fund is an encouraging step towards building a more resilient and inclusive supply chain, particularly for small and medium enterprises (SMEs) and mid-tier companies.
MSIA added that initiatives such as the RM2 billion MADANI Submarine Cable (SALAM) project, logistics and airport upgrades, and the ASEAN Business Entity (ABE) status and Investor Pass schemes will help strengthen Malaysia’s industrial infrastructure and investment ecosystem.
MSIA said policy consistency, reliable energy supply, and timely project delivery are essential to maintain investor confidence and enable continuous semiconductor growth.
The RM200 million Innovation Commercialisation Fund, enhanced venture capital tax incentives, and the ‘Made by Malaysia’ certification programme are also timely measures to drive a design-led, innovation-driven industry.
“These instruments must now be implemented effectively to support commercialisation of local semiconductor IP, component design, advanced packaging and advanced technology equipment, ensuring Malaysia’s innovation base grows alongside its manufacturing strength,” MSIA said.
The next phase must focus on delivery, depth, and coordination — ensuring Malaysia moves beyond assembly and testing into design, R&D, advanced manufacturing, and equipment leadership, MSIA said.
On Friday, Anwar, who is also the Finance Minister, tabled Budget 2026 amounting to RM470 billion, of which RM419.2 billion is allocated for government expenditure.
The budget, themed “Fourth MADANI Budget: The People’s Budget,” is the first under the 13th Malaysia Plan (2026–2030).
-- BERNAMA