Malaysia’s semiconductor push shifts focus to high-skilled engineering talent
Malaysia is prioritising talent development as its semiconductor sector moves into higher-value IC design, with Mida facilitating industry partnerships. Eighty Malaysian engineers have joined GreatAsic’s front-end design operations, reflecting the country’s transition from assembly-centric manufactu
Malaysia’s investment momentum remained strong in the first quarter of 2026, with RM92.8 billion in approved investments expected to generate more than 50,000 new jobs nationwide. The manufacturing sector accounted for RM24.1 billion of these approvals, with the electrical and electronics (E&E) industry leading the way at RM6.0 billion. However, beyond the investment figures lies an even more important story — the growing demand for high-skilled Malaysian engineers, integrated circuit (IC) designers and advanced manufacturing talents.
For Malaysian Investment Development Authority (Mida) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, the measure of success is evolving alongside this shift. “The true measure of success is not simply the capital we attract, but more importantly, the opportunities created, the capabilities built and the value generated for the nation. Every high-value engineering role represents knowledge transfer, skill development, and long-term capacity building for Malaysia,” he says. This reflects Malaysia’s broader industrial transformation — from measuring success by investment inflows to measuring success by the talent and innovation created through those investments.
That transformation is already taking place at GreatAsic Technology Sdn Bhd, where Malaysian engineers are designing integrated circuits (IC) that will power artificial intelligence (AI), electric vehicles (EVs) and next-generation digital technologies. Eighty Malaysian engineers, including fresh graduates, early-career practitioners, and experienced professionals, have recently joined GreatAsic’s front-end IC design operations. While the number may appear modest, it reflects Malaysia’s growing move into higher-value semiconductor activities centred on design, engineering and innovation.
For Alia Abu Hassan, 25, from Sungai Petani, Kedah, a fresh graduate now working as a junior physical design engineer at GreatAsic, the transition marks both a professional entry point and a personal milestone. “IC design gives fresh graduates the opportunity to work in higher-value roles. At the same time, it allows me to support my family in a meaningful way. It is not just about salary, it is about responsibility and the opportunity to take on real technical work early in my career,” she says. For senior engineer Jeff Khoo, 49, who joined GreatAsic as a principal physical design engineer after more than two decades in the industry, this move represents a deliberate step into a more specialised design environment. “Even after many years, there is always something new to learn. The industry evolves quickly. Staying relevant means continuously adapting and deepening technical capability, and making the most of every opportunity,” he says.
Malaysia’s semiconductor sector is entering a new phase shaped by the New Industrial Master Plan (NIMP) 2030 and the National Semiconductor Strategy (NSS). The emphasis is increasingly on building domestic capability, particularly in talent development, technology absorption, and participation in higher-value segments of the global supply chain. This comes as the global semiconductor industry is projected to surpass US$1 trillion (about RM4.094 trillion) in annual sales by 2026, driven by demand from AI, EV, cloud computing, and advanced computing systems. The collaboration between home-grown company GreatAsic and Xenith Technology Malaysia Sdn Bhd, the Malaysian unit of China-based Xenith Technology, demonstrates how national strategies are being translated into real industry collaboration. Through this partnership, GreatAsic has expanded its front-end IC design capabilities for applications in AI and EV, strengthening both its technical scope and its engineering base in Malaysia.
Developing semiconductor talent requires close collaboration between industry, universities and training institutions. As a member of the NSS Base Camp, Mida works with ecosystem partners to align education and training with industry needs. This includes working with the Ministry of Higher Education (Mohe) and the Malaysian Technical Universities Network (MTUN), comprising Universiti Malaysia Perlis (UniMAP), Universiti Teknikal Malaysia Melaka (UTeM), Universiti Tun Hussein Onn Malaysia (UTHM), and Universiti Malaysia Pahang Al-Sultan Abdullah (UMPSA). At Universiti Teknologi MARA (UiTM), investments in semiconductor laboratories and curriculum enhancement are strengthening the pipeline of industry-ready talent in areas such as IC design, semiconductor fabrication, testing and packaging, embedded systems, and process automation.
According to GreatAsic founder and CEO Ong Chin Hu: “Technology can be acquired, but talent must be nurtured. Malaysia already possesses strong engineering fundamentals. Our responsibility as industry players is to create opportunities that allow local talent to grow, innovate and contribute at the highest levels of semiconductor design. Building Malaysian capabilities today is an investment in the country’s relevance and competitiveness for decades to come.” As global supply chains evolve and semiconductors become increasingly critical to the AI era, Malaysia’s long-term position in the industry will depend not only on infrastructure or geographic advantage, but on the sustained development of engineering talent capable of contributing to design and innovation.
