New Front-End Fab Expands Malaysia’s Semiconductor Capabilities
CHIPX introduces the ASEAN region’s first 8-inch GaN/SiC wafer fab, strengthening Malaysia’s position in photonics and AI-oriented semiconductor manufacturing.
chipxglobal.com
Malaysia’s ambition to advance in front-end semiconductor manufacturing gained momentum with CHIPX announcing an 8-inch wafer fabrication facility dedicated to GaN- and SiC-based technologies. The project supports applications such as high-bandwidth optical interconnects, silicon photonics, and advanced materials platforms needed for next-generation AI and high-performance compute systems.
How the new facility supports Malaysia’s semiconductor and photonics ecosystem
The planned fab represents the first front-end GaN/SiC manufacturing line of its kind in ASEAN. Front-end processing has traditionally been absent from Malaysia’s semiconductor landscape, which is better known for assembly, test and packaging. The introduction of an 8-inch GaN/SiC line enables the country to expand upstream into epitaxy, wafer processing and device fabrication—areas critical for high-voltage power devices, photonic components, and optical transceiver platforms.
CHIPX’s initiative includes not only manufacturing infrastructure but also R&D programs, engineering teams, talent development and structured technology-transfer activities aimed at building domestic expertise.
Role in next-generation connectivity and AI compute architectures
The new fabrication capability is designed to support silicon-photonics components required for:
- ultra-high-speed transceivers and receivers,
- high-bandwidth interconnects for AI data centres,
- optical links for high-performance computing systems.
GaN and SiC technologies are increasingly used in advanced power stages and high-frequency devices because of their thermal stability, switching efficiency and power density. These characteristics are essential for energy-optimized compute architectures used in large-scale AI deployments.
According to CHIPX, the introduction of these capabilities in Malaysia supports the country’s move toward next-generation photonics and front-end semiconductor production.
International partnerships and technology transfer
CHIPX is collaborating with strategic investors and leading Taiwanese semiconductor partners to accelerate the engineering base required for the facility. The partnership framework includes:
- access to mature and emerging GaN/SiC process technologies,
- knowledge transfer for front-end operations,
- ecosystem development to strengthen local supply chains.
The company stated that these collaborations reflect a long-term commitment to building high-performance, energy-efficient semiconductor capabilities in Malaysia.
Alignment with Malaysia’s industrial policy and national strategies
The venture supports several national policy frameworks:
- National Semiconductor Strategy, which prioritises development of upstream capabilities;
- New Industrial Master Plan (NIMP 2030), emphasising advanced manufacturing and high-value technology sectors;
- National Energy Transition Roadmap, focusing on energy-efficient and sustainable industrial systems.
The fab contributes to national objectives by strengthening supply chain resilience, enabling higher-value semiconductor activities, and supporting emerging applications in AI, photonics and advanced materials engineering.
Comparable developments in the region
While several Asia-Pacific countries host SiC and GaN fabs—such as Taiwan’s established SiC manufacturing ecosystem, and Japan’s and South Korea’s specialised GaN facilities—no equivalent 8-inch GaN/SiC front-end fab currently exists in ASEAN. Malaysia’s entry into this segment places it alongside nations expanding their upstream semiconductor capabilities.
Conclusion
The CHIPX project marks a significant shift in Malaysia’s semiconductor position, introducing front-end GaN/SiC wafer fabrication and strengthening national capacity in photonics and high-bandwidth interconnect technologies. With a focus on advanced materials engineering, technology transfer and alignment with national policy frameworks, the initiative supports Malaysia’s long-term strategy to build a competitive and sustainable semiconductor ecosystem.
www.chipxglobal.com
