(From left) Weeroc chief technology officer and IC designer Salleh Ahmad, Invest Selangor Bhd CEO Datuk Hasan Azhari Haji Idris, Deputy Secretary of the Government (Development) and director of UPEN Datuk Johary Anuar, Selangor Menteri Besar Datuk Seri Amirudin Shari, Selangor exco for investment, trade and mobility Ng Sze Han and Sidec CEO Yong Kai Ping at the signing ceremony of the letter of intent between Sidec and Weeroc on Thursday. (Photo by Low Yen Yeing/The Edge)

KUALA LUMPUR (July 25): French semiconductor manufacturer Weeroc plans to invest about RM20 million and start operations in early 2025 at the Puchong Financial Corporate Centre in Selangor.

Weeroc has signed a letter of intent with the Selangor Information Technology & Digital Economy Corporation (Sidec) during the Selangor International Business Summit 2024 on Thursday. Under the collaboration, Sidec will assist in Weeroc’s operational launch in Malaysia.

There is a strong demand for chips, particularly with the growing need for artificial intelligence-related semiconductors, Sidec chief executive officer Yong Kai Ping told The Edge after the signing ceremony. However, the challenge lies in attracting local talent.

Based in Villebon-sur Yvette, a town just outside of Paris, the company is a start-up founded by Dr Salleh Ahmad from Selangor employing about 10 engineers. Weeroc specialises in developing chips for satellites, drones, and Airbus planes.

The signing ceremony was witnessed by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Selangor Menteri Besar Datuk Seri Amirudin Shari, Selangor state executive councillor for investment, trade, and mobility Ng Sze Han and Invest Selangor Bhd CEO Datuk Hasan Azhari Idris.

Selangor recognises Weeroc’s potential in the fabless semiconductor industry, particularly in precision-analog and radiation-hardened integrated circuit (IC) design for the aerospace and photodetection sectors, according to Sidec, a Selangor government agency to develop the state as a digital hub.

“Currently, we don't have enough engineers specialising in this area,” Yong said. “We need to highlight Malaysian talent and focus on attracting and training them.”

As the world’s sixth largest exporter of electronics and semiconductors, Malaysia plays a critical role in the global electrical and electronics supply chain. Malaysia is responsible for 7% of the semiconductor trade flows as well as 13% of back-end operations globally, including chip testing and packaging.

Prime Minister Datuk Seri Anwar Ibrahim announced in May that the government aims to attract at least RM500 billion in investments for chip design, advanced packaging, and semiconductor chip manufacturing equipment through the National Semiconductor Strategy.

The plan also involves training and upskilling 60,000 highly-skilled Malaysian engineers. Additionally, the government aims to establish at least 10 Malaysian companies specialising in design and advanced packaging, with revenues between RM1 billion and RM4.7 billion.