Malaysia Chip Startup Raises $2M to Meet AI Demand

A new Malaysian startup is stepping up to solve one of tech's most urgent challenges: meeting skyrocketing demand for advanced semiconductor packaging as artificial intelligence reshapes our world.

FusionAP Sdn Bhd just raised $2 million in pre-seed funding co-led by Vertex Ventures Southeast Asia & India and Southern Capital Group. The company will use the investment to advance engineering, research and development, intellectual property, and pilot production capabilities.

The timing couldn't be better. Global demand for sophisticated chip packaging has exploded alongside AI growth, but production capacity remains concentrated in just a handful of countries. FusionAP aims to change that equation.

The startup's founding team brings serious credentials to the mission. CEO Ooi Teng Chow previously helped build Intel's advanced packaging operations in Malaysia, while co-founder Peter Chavart served as General Manager of Intel's Disaggregation Manufacturing Organization.

FusionAP is developing an outsourced semiconductor assembly and test platform focused on advanced 2.5D and 3D packaging technologies. These cutting-edge techniques allow chips to pack more computing power into smaller spaces, essential for AI applications.

The company works with global design houses, foundries, and technology partners from prototype development through full production. Malaysia's government is backing the effort too, providing a matching research grant through the Malaysia Science Endowment.

The Ripple Effect

FusionAP isn't working alone. The company joined forces with SkyeChip, Inari Amertron, Pentamaster, and NSW Automation to form the Malaysia Advanced Packaging Consortium, a collective effort to build the nation's semiconductor ecosystem from the ground up.

The initiative reflects Malaysia's ambitious goals. The country aims to capture 7 percent of the global advanced packaging market by 2035, positioning itself as a critical player in the technology supply chain.

For a world increasingly dependent on AI and advanced computing, diversifying chip production beyond a few concentrated regions means more stable supply chains and faster innovation. Malaysia's push into advanced packaging could help ensure the technologies powering tomorrow's breakthroughs don't hit production bottlenecks.