Science, technology and innovation minister Chang Lih Kang said the consortium was formed through collaboration between five local companies and the government under a matching grant, in a “whole-of-nation” approach.

He said the five companies are SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd, and NSW Automation Sdn Bhd.

“The government has approved a RM92 million research and development grant over 24 months, while industry players will contribute RM93 million, bringing the total to RM185 million.

“The main objective is to enable Malaysia to move up the semiconductor value chain.

“Malaysia already has a strong foundation in semiconductors and electrical and electronics, but has largely been focused on outsourced semiconductor assembly and testing,” Bernama reported him as saying after a working visit to three of the companies.

Chang said only a few countries are capable of advanced packaging, as it is highly niche.

“If Malaysia succeeds, it will unlock significant business opportunities and accelerate economic growth,” he said.