Khazanah’s Dana Impak Continues Strategic Investments To Enhance Malaysia’s Semiconductor Ecosystem

KUALA LUMPUR, Dec 27 (Bernama) -- Khazanah Nasional Bhd (Khazanah), through its initial RM1 billion allocation via Dana Impak, today announced two strategic investments to drive greater growth and innovation in Malaysia’s Industrial Revolution 4.0 (IR4.0) technologies and capacity development; and boost research & development (R&D) in artificial intelligence (AI) and semiconductors technologies.

Today, Khazanah announced its partnership with the co-founders of ViTrox Corporation Bhd, a Malaysian champion in automated vision inspection equipment and solutions, and Southern Capital Group, a leading small and medium enterprise (SME)-focused regional private equity firm, by investing into the Cambrian Fund.

The Cambrian Fund is dedicated to support entrepreneurs and SMEs focusing on IR4.0 technologies such as machine vision, AI and robotics.

The fund will play a role in transforming the semiconductor and advanced manufacturing ecosystem in Malaysia and beyond by unlocking growth opportunities, nurturing greater local participation and supporting innovative entrepreneurs and SMEs to scale and compete regionally.

In tandem, the fund aims to harness the experience of and collaborate with Malaysian industry leaders to provide invaluable expertise, mentorship and networks in support of Cambrian Fund’s investments.

The Cambrian Fund achieved a first closing of RM100 million with Khazanah as one of its anchor investors.

Khazanah managing director Datuk Amirul Feisal Wan Zahir said the Malaysian electrical & electronic (E&E) sector is a key driver of the nation’s economy, contributing 40 per cent to the country’s exports in 2023.

With semiconductors at its core, Malaysia is today the sixth largest semiconductor exporter globally, commanding 13 per cent of the global market share for packaging, assembly and testing.

“Through Khazanah’s Dana Impak investments, the Cambrian Fund is aligned with the government’s efforts in fostering greater growth, innovation, local talent development and integration into the global supply chain while enhancing international market ties and creating opportunities for Malaysian companies to expand globally,” he said in a statement today.

ViTrox co-founder and group chief executive officer (CEO) Datuk Chu Jenn Weng said they are deeply grateful for Khazanah's unwavering support through its Dana Impak initiative, which empowers them to nurture a new wave of home-grown entrepreneurs and SMEs driving IR4.0 innovations -- spanning machine vision, artificial intelligence, robotics, supporting the advancements in the semiconductor industry and beyond.

“By fostering close collaborations among industry leaders, venture capitalists, and government-linked investment companies, I am confident we can build a resilient and thriving local tech ecosystem.

“Together, we will elevate Malaysia’s global standing in advanced technologies and cultivate world-class champions in the tech sectors,” he said.

Southern Capital managing director Kenneth Tan said Southern Capital is excited to partner with the co-founders of ViTrox to help fund the next generation of technology leaders in Malaysia and beyond.

“Having Khazanah as part of our first close is validation of Cambrian Fund’s strategy of leveraging on deep industry knowledge and networks to identify, invest and accelerate the development of high potential companies in some of the most exciting sectors of the global economy,” he said.

To further strengthen the Malaysian semiconductor ecosystem, Khazanah announced an investment in Syntiant Corp (Syntiant), an edge AI company based in Irvine, California, and recognised globally as a leader in providing innovative hardware and software solutions for edge AI deployment.

Syntiant’s purpose-built silicon and machine learning models are deployed globally across a wide range of consumer and industrial use cases, from earbuds to automobiles.

Syntiant's commitment to establish a world-class AI R&D centre in Malaysia is a key strategic benefit of Khazanah’s investment.

The centre will drive technological innovation and development, contributing to Malaysia's ambition to move up the semiconductor value chain as well as participate in the growing global AI industry.

“This underscores our commitment to developing an advanced semiconductor ecosystem in Malaysia.

“By supporting Syntiant’s expansion here in Malaysia, we enhance the nation’s technological capabilities while creating high-skilled, high-income job opportunities for Malaysians. This effort aligns with our strategic priorities to drive economic and technological advancements in the country,” Amirul Feisal added.

“We are very grateful to Khazanah Nasional and our other financial partners that have enabled us to execute on our growth strategy, while creating unparalleled value for global customers,” said Kurt Busch, CEO of Syntiant.

“By establishing a world-class AI R&D centre in Malaysia, we’re not only expanding our footprint but also investing in the country’s vibrant technological ecosystem. This investment marks a pivotal moment for Syntiant as we integrate MEMS microphone technology into our AI-driven solutions to bring about the next generation of intelligent interface,” he added.

Partnering with Khazanah and several leading technology investors, Syntiant will utilise fundraising proceeds to acquire 100 per cent of the consumer MEMS microphones (CMM) division from Knowles Corporation (Knowles), which has significant assembly and testing operations in Malaysia.

Knowles' CMM division is a leading manufacturer of high-performance SiSonicTM micro-electro-mechanical systems (MEMS) microphones, essential for voice and audio in smartphones, smart speakers, wearables and other applications in automotive and household appliances.

The acquisition allows Syntiant to offer global customers a complete turnkey solution for always-on audio and speech applications.

In 2023, the CMM division employed over 700 people in Malaysia who will benefit from the value creation of this investment.

Khazanah’s initiative in the semiconductor and advanced manufacturing sector through Dana Impak aligns with national economic policies such as the GEAR-uP Programme, Ekonomi MADANI framework and New Industrial Master Plan 2030 (NIMP 2030), supporting the National Semiconductor Strategy to strengthen the local ecosystem and Malaysia’s position in the global supply chain.

It is also aligned to its Advancing Malaysia strategy anchored by A Nation That Creates framework that aims to boost national productivity, innovation and competitiveness.

-- BERNAMA

(Disclaimer: This is a paid advertorial. Bernama assunes no responsibility for the content, accuracy and opinions carried in the article)