Top 10 Semiconductor Companies in Malaysia (2026)

Malaysia doesn’t make the world’s most famous chips. It makes them work.

For more than five decades, it has quietly packaged, tested and inspected a large slice of the chips inside phones, cars and servers. Now the story is changing.

Local firms are no longer content to sit at the back end. One Penang start-up has designed a 7nm edge AI processor. A Kulim foundry is building out silicon photonics. Batu Kawan inspection-machine makers are riding AI demand.

The government wants more. Its National Semiconductor Strategy, launched in May 2024, targets at least RM500 billion in investment in its first phase, backed by at least RM25 billion in fiscal support, according to MIDA.

So which Malaysian semiconductor companies actually matter? Not every listed counter with “tech” in its name deserves a shortlist spot.

This guide looks at the top semiconductor companies in Malaysia for 2026: the OSAT leaders, equipment makers, a wafer foundry, a fabless design house and one multinational whose Malaysian operations are too big to ignore.

Why Businesses Are Investing in Semiconductors in Malaysia

A Mature Back-End Ecosystem

Malaysia’s strength is assembly, test and packaging. The Edge Malaysia, in an analysis republished by MIDA, puts the country’s share of the global chip testing and packaging market at about 13%.

Clear Government Direction

The National Semiconductor Strategy sets concrete goals, including training 60,000 high-skilled Malaysian engineers and building at least 10 Malaysian companies in design and advanced packaging.

Steady Investment Flows

MIDA reported RM120.5 billion in approved manufacturing investments in 2024, with RM55.8 billion going to electrical and electronics. SEMI says the E&E sector secured a further RM28.5 billion in approved investments in 2025.

A Neutral Supply-Chain Location

Many semiconductor firms in Malaysia serve American, European, Chinese and Taiwanese customers at once. That flexibility helps buyers spreading supply chains across countries.

Top 10 Semiconductor Companies in Malaysia at a Glance

Rank	Company	Primary Strength	Best For	HQ / Founded
1	Inari Amertron	RF and optoelectronics OSAT	High-volume RF, photonics and SiP assembly	Petaling Jaya (ops in Penang) / 2006
2	Malaysian Pacific Industries (Carsem)	Leadframe and power-package OSAT	Power modules, sensors and AI-server parts	Ipoh plants (Carsem) / Carsem 1972
3	ViTrox	Machine vision and inspection	Chip and PCB inspection equipment	Batu Kawan, Penang / 2000
4	Unisem	Assembly, test and wafer bumping	Flip-chip and power-management chips	Kuala Lumpur / listed 1998
5	Infineon Technologies Malaysia (multinational)	Power semiconductors, SiC	Automotive and energy power chips	Germany parent / in Malaysia since 1973
6	Frontken	Precision cleaning and coating	Leading-edge fab support services	Petaling Jaya / listed 2006
7	Pentamaster	Automated test equipment	Test handlers, burn-in and automation	Bayan Lepas, Penang / 30+ years
8	SilTerra	Specialty wafer foundry	Mixed-signal, MEMS and photonics wafers	Kulim, Kedah / 1995
9	SkyeChip	Fabless IC and silicon IP design	Memory interface IP and custom ASICs	Penang / 2019
10	Greatech Technology	Factory automation systems	Production lines for chips, solar and data centres	Bayan Lepas, Penang / 1997

Top 10 Semiconductor Companies in Malaysia (2026)

Here’s how each of these chip companies in Malaysia earns its place.

1. Inari Amertron

Founded in Penang in 2006, Inari Amertron Berhad is now one of Malaysia’s largest outsourced semiconductor assembly and test (OSAT) groups. The group runs 11 manufacturing plants across Malaysia, the Philippines and China, totalling more than 2.15 million sq ft.

Inari built its name on radio frequency (RF) filters, fibre-optic transceivers and optoelectronics for smartphones and data communications. FY2026, which ended in June, was tough: revenue fell 12.2% to RM1.19 billion on lower RF volumes, and a fire at its Philippines plant hit profit. The next leg is photonics and advanced packaging, plus a pilot line for AI data-centre power modules that started in August 2026.

Key Solutions:

• ✔ RF and system-in-package (SiP) assembly and test
• ✔ Laser and photonics chip fabrication, wafer certification and optical sub-assembly
• ✔ Wafer probe, processing and package test
• ✔ Power-management modules for AI data-centre cards (pilot stage)

Best for: Brands that need high-volume RF, optical or SiP assembly with plants in more than one country.

2. Malaysian Pacific Industries (Carsem)

Malaysian Pacific Industries (MPI), part of the Hong Leong group, does its chip work through Carsem, which was founded in 1972. Carsem runs two factories in Ipoh and a plant in Suzhou, China, with a newer facility in Suzhou’s Suxiang zone that analysts expect to contribute from FY2027. Carsem says it has shipped more than 12 billion Micro Leadframe Packages.

MPI had a strong FY2026, ending June. Revenue rose 24% to RM2.64 billion and net profit climbed to RM188.04 million, with US revenue up 52%. RHB Research estimates AI servers now account for about 13% of the business, and management is steering towards higher-margin AI-server, sensor and wide-bandgap work. All Carsem factories hold IATF 16949 and ISO 9001 certification.

Key Solutions:

• ✔ Turnkey assembly and test for RF, analog, mixed-signal, sensor and power devices
• ✔ MLP, flip-chip on leadframe and copper clip packages
• ✔ System-in-package and QFP families
• ✔ Power modules for server applications

Best for: Power and analog chip companies that need automotive-grade, high-volume packaging.

3. ViTrox Corporation

ViTrox was founded in 2000 by Chu Jenn Weng and Steven Siaw Kok Tong and is headquartered at its ViTrox Campus in Batu Kawan, Penang. It listed in 2005 and makes machines that use cameras, 3D optics and X-ray to find defects in chips and circuit boards.

Business is booming. In the third quarter of 2026, ViTrox’s profit more than tripled to RM118.58 million on revenue of RM485.10 million, driven by demand for inspection systems used in AI infrastructure and networking equipment. Its main engines are Automated Board Inspection and Machine Vision Systems.

Key Solutions:

• ✔ IC inspection handlers and wafer inspection systems
• ✔ Automated optical inspection (AOI) and solder paste inspection (SPI)
• ✔ Automated X-ray inspection (AXI) and 3D BGA inspection
• ✔ V-ONE Industry 4.0 manufacturing intelligence

Best for: Fabs, OSATs and EMS firms that need proven inspection equipment from a local maker.

4. Unisem

Unisem (M) Berhad has been listed on Bursa Malaysia since 1998 and is based in Kuala Lumpur, with its main assembly and test operations in Ipoh. It also runs a wafer bumping unit, Unisem Advanced Technologies, and a plant in Chengdu, China. A new facility in Gopeng, Perak is ramping up flip-chip QFN and LGA lines.

The company offers turnkey assembly of leadless, laminate, leadframe and wafer-level packages, plus more than 100 variations of gold, copper-pillar and solder bumping. Second-quarter 2026 revenue rose 20% year on year to about RM570 million, and HLIB Research estimates power-management chips for AI data centres make up roughly a third of group revenue. In July 2026, Unisem announced a private placement that could raise about RM742 million, mostly for equipment, cleanroom space and debt repayment.

Key Solutions:

• ✔ Turnkey assembly across leadframe, laminate and wafer-level packages
• ✔ Wafer bumping, probing and backgrinding
• ✔ Analog, digital and mixed-signal test
• ✔ Super-thin MIS QFN packaging

Best for: Chip firms needing bumping and flip-chip capacity across Malaysia and China.

5. Infineon Technologies Malaysia (Multinational)

Infineon is a German multinational, but its Malaysian footprint earns it a place here. The company began operations in Melaka in 1973 and opened its Kulim front-end fab in 2006. In August 2024, it opened the first phase of a 200mm silicon carbide (SiC) power semiconductor fab in Kulim, a €2 billion investment, with a second phase of up to €5 billion planned. At that opening, Infineon said it employed more than 16,000 people in Malaysia.

Kulim is central to Infineon’s power semiconductor business. At launch, it reported about €5 billion in design wins, with six automotive manufacturers among its customers. In October 2026, Infineon signed a multi-year deal with Wolfspeed for 200mm SiC wafers, supporting its shift from 150mm to 200mm production, with Kulim part of that network.

Key Solutions:

• ✔ Silicon carbide power semiconductors on 200mm wafers
• ✔ Gallium nitride (GaN) epitaxy at Kulim
• ✔ Long-running manufacturing operations in Melaka
• ✔ Power chips for EVs, solar inverters and AI data centres

Best for: Automotive and energy firms buying power chips made in Malaysia.

6. Frontken Corporation

Frontken Corporation Berhad is based in Petaling Jaya and debuted on Bursa’s Mesdaq market in 2006. It doesn’t make chips. It keeps the machines that make them clean. Its semiconductor division provides precision cleaning, coating and refurbishment of wafer-fab equipment parts in cleanroom facilities across Malaysia, Singapore and Taiwan, alongside an oil and gas engineering arm.

Frontken’s biggest customer is a leading Taiwanese foundry, which Kenanga Research identifies as TSMC. Management has said about 70% of revenue is tied to leading-edge nodes. That exposure has paid off: net profit for the nine months to September 2026 rose 33% to RM147.3 million on revenue of RM557.8 million. It added cleaning lines at its second Taiwan plant ahead of the original 2027 plan.

Key Solutions:

• ✔ Precision cleaning of wafer-fab chamber parts
• ✔ Thermal spray and cold build-up coatings
• ✔ Refurbishment and precision machining
• ✔ RFID-based parts tracking

Best for: Fabs that need reliable parts cleaning to keep equipment up and yields stable.

7. Pentamaster Corporation

Pentamaster Corporation Berhad is headquartered in Bayan Lepas, Penang, with a second base in Batu Kawan and offices in Germany, the US, China, Vietnam, Japan and Taiwan. The company says it has more than three decades of experience in automation and test.

It operates through two main segments: automated test equipment (ATE) and factory automation solutions (FAS). The ATE side covers turret and gravity-feed test-and-vision systems, wafer-level burn-in and equipment for SiC, GaN and power modules. For the nine months to September 2026, revenue rose to RM585.27 million and net profit reached RM58.63 million, with the company pointing to sustained demand in AI compute and medical work.

Key Solutions:

• ✔ Test and vision handlers for discretes and ICs
• ✔ Wafer-level burn-in systems
• ✔ Electro-optical and MEMS sensor assembly equipment
• ✔ i-FLEX factory automation platform

Best for: Chipmakers and OSATs buying test, burn-in and automation equipment for power and optical devices.

8. SilTerra Malaysia

SilTerra was founded in 1995 and started operations in 2001. It is based in Kulim, Kedah, and is one of the few wafer foundries owned by a Malaysian group. The company says it has a capacity of 40,000 wafers per month with more than 1,400 employees. In 2021, Dagang NeXchange (DNeX) bought a 60% stake from Khazanah Nasional, while China’s CGP Fund took the remaining 40%.

SilTerra’s process work includes high-voltage, mixed-signal, RF and MEMS technologies. A long-running shareholder dispute ended on 8 October 2026, when DNeX and CGP Fund-linked companies settled without any admission of liability. As part of the deal, a CGP-linked firm will subscribe for RM100 million in preference shares in DNeX’s semiconductor unit, subject to MITI or MIDA approval. DNeX said the money would support SilTerra’s expansion, including silicon photonics. More detail is on the official SilTerra website.

Key Solutions:

• ✔ Contract wafer fabrication
• ✔ High-voltage and mixed-signal processes
• ✔ MEMS and RF technologies
• ✔ Silicon photonics development

Best for: Fabless firms that want a non-Taiwanese foundry for mature-node specialty wafers.

9. SkyeChip

SkyeChip was founded in 2019 in Penang by Datuk Fong Swee Kiang (CEO) and Teh Chee Hak (CTO). It is a fabless company that licenses silicon IP and designs custom ASICs, and it doesn’t manufacture chips. In August 2025, it unveiled MARS1000, which it presented as Malaysia’s first locally designed edge AI processor, built on a 7nm process.

Its memory interface IP, covering high-bandwidth memory (HBM) and LPDDR, is the main earner. On 20 May 2026, SkyeChip listed on Bursa’s Main Market after raising RM352 million at 88 sen a share, with the Malaysian public tranche oversubscribed 95.03 times. For the year to March 2026, net profit rose to RM48.54 million on revenue of RM155.02 million. More than 90% of revenue comes from China and Taiwan. AI chip designers across Asia are attracting fresh capital, as FuriosaAI’s latest funding round showed.

Key Solutions:

• ✔ HBM and LPDDR memory interface IP
• ✔ Custom ASIC design
• ✔ MARS1000 edge AI processor
• ✔ Roadmap for HBM4, LPDDR6 and Arm-based platforms

Best for: Chip designers that need proven memory IP or a local ASIC partner.

10. Greatech Technology

Greatech Technology Berhad was founded in 1997 and is headquartered in Bayan Lepas, Penang. It designs and builds custom factory automation systems and production lines. When it broke ground on its Batu Kawan IV facility in 2023, MIDA said the RM1.3 billion project would take Greatech’s combined floor space past 1.2 million sq ft.

Greatech isn’t a pure chip firm, but semiconductor automation sits next to solar, data centres, e-mobility and life sciences in its order mix. Its outstanding order book reached RM1.83 billion on 21 August 2026, which management expects to keep it busy into the second half of 2027. The Star reported in July 2026 that semiconductor automation demand was gradually recovering.

Key Solutions:

• ✔ Custom production line systems
• ✔ Automated equipment and modules
• ✔ Automation for semiconductor and data-centre hardware
• ✔ After-sales support and training

Best for: Manufacturers that need a turnkey automation line built in Malaysia.

How to Choose the Right Semiconductor Partner in Malaysia

Match the Value-Chain Stage

An OSAT, a foundry, an equipment maker and an IP house solve very different problems. Decide whether you need packaging, wafers, test kit or design help before you start comparing names.

Check Package and Process Fit

Ask for proof the supplier already runs your package type or process in volume. Many Malaysian groups also run plants in China, the Philippines or Thailand, so confirm where your parts will be made.

Verify Certifications

Automotive and medical customers should confirm IATF 16949, ISO 9001 and ISO 14001 status for the exact plant that will handle their product.

Look at Customer Concentration

A supplier that depends on one or two clients may reprioritise when those clients ramp. Ask how much capacity is committed elsewhere and how peak lead times look.

Review Ownership and Corporate Changes

Shareholding disputes, placements and privatisations can affect investment plans. Bursa takeovers are common, as the Yinson privatisation offer showed, so read recent filings before signing multi-year deals.

Frequently Asked Questions

Is Malaysia a chip designer or mainly a chip packager?

Mostly a packager and tester today, but that’s changing. SkyeChip’s MARS1000 and its 2026 listing show local design is growing, and the National Semiconductor Strategy targets at least 10 Malaysian firms in design and advanced packaging.

Are multinational plants in Malaysia counted as Malaysian semiconductor companies?

Not strictly. Infineon, Intel and AMD are foreign-owned but run big local operations. Global deal-making, including Broadcom’s run of acquisitions, can change who owns a local plant, so check the parent company.

Where are most semiconductor companies in Malaysia located?

Most semiconductor companies in Malaysia cluster in Penang, especially Bayan Lepas and Batu Kawan. Kulim in Kedah hosts the wafer fabs, while Ipoh, Melaka and the Klang Valley host other major plants.

How are Malaysian chip companies exposed to AI demand?

Mainly through power-management chips, server modules, optical components and inspection equipment. MPI, Unisem, ViTrox and Pentamaster have all linked recent growth to AI infrastructure.

Conclusion

Malaysia’s semiconductor industry is no longer just a low-cost back end. The leading semiconductor companies in Malaysia now cover photonics, SiC power chips, memory IP, leading-edge fab support and advanced inspection, and several posted strong 2026 results on AI demand.

The right partner depends on what you’re building. Start with the value-chain stage you need, check recent filings and visit the plant. For inspection equipment, the ViTrox website is a good place to compare product lines.