Architects of the future: building Malaysia’s next generation of semiconductor talent

This article appeared in the Aug 13, 2026 issue of the monthly print edition. Subscribe now.

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.

Shift on ground

That shift is already visible on the ground.

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. For many fresh graduates, this is more than just a first job — it is an opportunity to contribute to some of the world’s most advanced technologies from the very start of their careers.

Eighty Malaysian engineers, including fresh graduates, early-career practitioners, and experienced professionals, have recently joined GreatAsic’s front-end IC design operations. The intake places them in one of the most advanced segments of the semiconductor industry. While the number may appear modest, it reflects Malaysia’s growing move into higher-value semiconductor activities centred on design, engineering and innovation.

From classroom to circuit design roles

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.

Alia’s experience reflects Malaysia’s transition towards higher-value engineering work, where young engineers are increasingly involved in IC design rather than traditional back-end manufacturing.

Malaysia has long been recognised for its strengths in semiconductor assembly, testing, and packaging. Today, the industry is steadily moving upstream into front-end IC design and engineering, where intellectual property, chip architecture and innovation are created.

For senior engineer Jeff Khoo, 49, who joined GreatAsic as a principal physical design engineer after more than two decades in the industry, including technical and management roles in global semiconductor companies, 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.

Together, Alia and Khoo represent two generations of Malaysian engineers contributing to a more sophisticated, innovation-driven semiconductor industry.

Policy outlook for semiconductor industry

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. However, competition is no longer defined solely by scale or cost. It is increasingly shaped by where value is created within the supply chain, and whether countries possess the talent to capture it.

Within this context, Malaysia’s policy focus has evolved from attracting investment alone to ensuring that investments generate lasting capabilities within the country.

Building value through industry collaboration

The collaboration between home-grown local 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.

The collaboration is also expected to support its gradual expansion into emerging automotive technology segments, including advanced driver-assistance systems (Adas), positioning the company within higher-value, system-level semiconductor applications.

The initiative was facilitated through Mida’s role in strengthening industry linkages and aligning ecosystem partners across the semiconductor value chain.

Talent development across ecosystem

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.

In supporting this objective, Mida works closely with the Ministry of Higher Education (Mohe), including 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). These institutions place strong emphasis on technical and vocational education and training (TVET), ensuring strong alignment with evolving industry requirements in advanced electronics and semiconductor design.

This effort is complemented by universities expanding specialised semiconductor capabilities. At Universiti Teknologi MARA (UiTM), investments in semiconductor laboratories, curriculum enhancement, and programmes spanning E&E engineering, industrial physics, and mechatronics are strengthening the pipeline of industry-ready talent in areas such as IC design, semiconductor fabrication, testing and packaging, embedded systems, and process automation.

At the same time, Mohe’s Research and Industry-Infused Incubator (MRI3), led by Universiti Sains Malaysia (USM), provides students with structured industry projects and workplace exposure to strengthen graduate employability and better align university training with industry needs.

Beyond universities, TVET institutions, including those under MARA and the Department of Manpower (JTM), are strengthening workforce readiness across different skill levels. Together with ecosystem partners such as BEYOND4, these collaborations are expanding access to science, technology, engineering and mathematics (STEM) education, supporting Bumiputera talent, and fostering technical capability and innovation-driven entrepreneurship across the semiconductor ecosystem.

Together, these initiatives are shaping a more integrated ecosystem in which investment attraction, education, and workforce development are increasingly interconnected. Mida remains steadfast in reinforcing linkages between companies as well as public institutions, ensuring investment flows are matched with talent readiness and industrial capability.

More than jobs: shift in value creation

As Malaysia deepens its participation in the semiconductor sector, the definition of industrial success is evolving. Investment approvals remain an important indicator of success, but increasing attention is now being placed on what those investments ultimately deliver — skills, technology transfer and higher-value economic activities.

This is especially relevant as global demand for semiconductors accelerates across AI, automotive electronics, and advanced computing systems. Malaysia’s challenge is no longer entry into the industry, but sustained progression within it. The emergence of IC design capabilities, supported by industry collaboration and ecosystem alignment, suggests that this transition is already underway.

Engineering talent as competitive factor

Malaysia’s long-term position in the semiconductor 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. In this sense, talent is becoming a central determinant of competitiveness rather than a supporting input.

This shift is also reshaping how industry views long-term investment. Increasingly, companies are looking beyond technology and facilities to the quality of the engineering talent they can develop and retain.

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, countries that can consistently build, attract, and retain high-quality engineers are likely to strengthen their position in the value chain.

At GreatAsic, the 80 engineers represent more than a workforce statistic. They reflect an emerging capability base where policy direction and technical practice converge.

Malaysia’s semiconductor path forward

Malaysia’s semiconductor journey is entering a new chapter. While attracting quality investments remains important, the country’s longterm success will increasingly depend on its ability to develop world-class engineering talent, strengthen local capabilities and create higher-value opportunities for Malaysians.

The progress is already visible — in industry collaborations, universities and companies like GreatAsic, where Malaysian engineers are contributing to cutting-edge semiconductor design.

As policy, industry, and talent continue to come together, Malaysia is not simply participating in the global semiconductor value chain — it is steadily moving up it.

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