Rafizi said IC design parks cost less compared to infrastructure projects, making funding a minor issue.

“One highway costs a few billion (ringgit). Between putting one highway in Klang Valley, I would rather put a few billion into more IC design parks,” he told a press conference after launching the Malaysia Semiconductor IC Design Park in Puchong Financial Corporate Centre.

As such, Rafizi said, the focus should be on attracting more IC design companies to establish operations locally.

“The discussion is ongoing in the ministry. Of course, it will take time,” he said.

“But if we can pull it off, it will make Malaysia more prominent in the IC design industry.”

Rafizi also said the growing interest in data centres would continue to drive the demand for semiconductors.

“At some point, we want to move away from using chips designed elsewhere. We want to see more data centres in Malaysia using chips designed by Malaysians,” he said.

The Malaysia Semiconductor IC Design Park was announced by Prime Minister Anwar Ibrahim in April at the KL20 Summit 2024.

Anwar said the Selangor state government, through its digital economy arm, the Selangor Information Technology and Digital Economy Corporation, would spearhead the initiative.

Set to be the largest IC design park in Southeast Asia, the facility currently has five tenants: Maistorage, Skyechip, Weeroc, AppAsia ChipsBank and SensoremTek Sdn Bhd.

It is designed to accommodate up to six local and international IC design companies with at least 300 IC design engineers, with potential for expansion to 60,000 sq ft.