Malaysian Investment Development Authority (MIDA), along with the Federation of Malaysian Manufacturers (FMM) and PE firm Bintang Capital Partners have launched a fund to boost Malaysia’s semiconductor industry with a strong focus on sustainability.
“By combining MIDA’s strategic oversight, FMM’s extensive industry network, and Bintang Capital’s financial expertise, we’re creating a powerful ecosystem that will elevate local companies to global standards. Our focus is to develop world-class capabilities, attract premium investments, and establish Malaysia as a trusted global semiconductor hub,” MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, said in a release.
The Bintang Semiconductor Impact Fund I (BSIF I), is aimed at investments in companies within and adjacent to the semiconductor value chain, including high-tech manufacturing and automation.
It is focused on promoting carbon transition initiatives and career development opportunities for women, while adhering to global B Corp certification standards. It will look to address both environmental and social opportunities within the semiconductor sector.
The three parties introducing the fund believe that the partnership aligns with Malaysia’s National Semiconductor Strategy (NSS) goals to develop local semiconductor capabilities and support the growth of small and medium enterprises.
The fund is expected to make 100 local companies IPO ready in the next five years, develop suitable infrastructure and help to attract global investors.
In October last year, Bintang Capital Partners launched an impact fund with a focus on women empowerment in the local semiconductor industry. Bintang Semiconductor Impact Fund I (BSIF I), targets a corpus of up to 200 million ringgit ($47 million) to invest in growth-stage semiconductor companies with a clear focus on environmental and social impact. It will employ a “carry-at-risk” model, where a portion of the firm’s carried interest is tied to impact performance.
Malaysia is targeting at least 500 billion ringgit ($107 billion) in investment for its semiconductor industry, Prime Minister Anwar Ibrahim had said last year, as the Southeast Asian country looks to position itself as a global manufacturing hub.
However, the impact of the latest Trump tariffs on the sector, remains uncertain.
When US President Donald Trump announced the now-suspended 24% reciprocal levy on imports from Malaysia on April 2, the country’s semiconductor industry was excluded temporarily from the tariff. However, concerns persist in the sector.
Malaysia’s chip industry is a long-established base for global technology giants like Intel Corp., and a key destination for Chinese semiconductor firms seeking to diversify and bypass trade barriers implemented during the Sino-US trade war.
