Khazanah, InvestPenang launch $24.5M fund for Penang chip startups
What's the deal? Khazanah Nasional BerhadDealroom has a profile for this one. Try Dealroom → and InvestPenangDealroom has a profile for this one. Try Dealroom → will establish a US$23.9M (≈$24.5 million) Strategic Investment Fund to back early-stage semiconductor and advanced manufacturing companies in Penang. The venture capital fund targets firms in their early growth stages and was announced in the Dewan Rakyat as part of Malaysia's Budget 2027.
Why now? Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled Budget 2027 with a focus on spreading economic development beyond Malaysia's established centers. The fund underscores the federal government's push to nurture homegrown industrial innovation.
What's the endgame? The initiative is designed to position Penang as the country's national technology hub and a financial technology hub, strengthening its role in high-value industries.
The bigger picture: The fund is one piece of a wider regional industrial plan. Kedah's Kulim Hi-Tech Park will be developed to attract global semiconductor investment, while Perak will build out the Automotive Hi-Tech Valley in Tanjong Malim, offering relocating vendors tax deductions of up to US$1.2M on qualifying costs between January 1, 2027, and December 31, 2030.
The signal: Malaysia is spreading chip and advanced manufacturing bets across its northern corridor, aiming to build a resilient semiconductor supply chain and create skilled jobs beyond its traditional economic hubs.
Read more: startupresearcher.com
Image credit: IBM Research
