CIMB sees Malaysia's AI role expanding across semiconductor chain

Investing.com -- CIMB Securities said Malaysia's semiconductor sector is expanding its participation in the artificial intelligence supply chain following a technology tour in Penang at the end of July 2026.

The brokerage hosted 13 institutional investors from Malaysia and Singapore, meeting with 12 companies across the semiconductor value chain. The companies covered IC design, advanced packaging, automated test and vision-inspection equipment, assembly and test services, electronics manufacturing services, and precision sheet-metal fabrication.

CIMB noted that companies are participating across different layers of AI infrastructure. ViTrox benefits from greater inspection requirements as chip designs become more complex, while Mi Technovation supplies specialty materials used in advanced packaging. SkyeChip provides high-speed memory-interface and connectivity technologies required in AI chips.

Silicon photonics emerged as a recurring theme during the meetings. As AI clusters scale, copper interconnects are reaching their limits, making faster optical data transmission critical. Malaysian companies are positioning across this ecosystem, with Inari in silicon photonics for AI data center interconnects, Dagang NeXchange in silicon photonics wafers fabrication, NationGate in optical transceivers and AI servers, and EG Industries in higher-speed optical modules progressing from 800G towards 1.6T.

The Malaysian Advanced Packaging Consortium is strengthening collaboration across chip design, equipment, materials, and OSAT players to accelerate domestic advanced packaging capabilities. Companies such as SkyeChip, GreatAsic, and FusionAP are expanding Malaysia's footprint in silicon IP, custom ASIC design, and advanced packaging integration.

CIMB maintains an overweight stance on the Malaysian tech sector, with a preference for companies where AI demand is visible in orders, shipments, or recurring revenue.

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