Malaysia’s Budget 2027 puts government-linked investors at the centre of its semiconductor strategy, according to a well-researched report by Dashveenjit Kaur at TechWire Asia. Khazanah Nasional and KWAP have committed RM1.2 billion to help local chip companies move into higher-value work. That is more than double the RM550 million the two funds pledged in Budget 2026.
The report also covers a new RM100 million Penang fund for early-stage semiconductor and advanced manufacturing firms, and TNB’s RM15 billion grid upgrade, which chipmakers and data centres will rely on. It looks at what this means for Malaysia’s goal of growing beyond assembly and testing into areas like IC design. It includes views from MIDA, Equinix Malaysia and Open DC, and the latest on US tariffs for Malaysian chips.
Our thanks to TechWire Asia for this clear look at where the money is going and why it matters for the industry.

