en.Wedoany.com Reported - Malaysian advanced semiconductor packaging startup FusionAP Sdn Bhd recently announced it has secured $2 million in a Pre-Seed funding round. The funds will be specifically used for engineering and process integration, R&D, intellectual property development, and pilot production capacity building. As one of the first local Outsourced Semiconductor Assembly and Test (OSAT) providers in Malaysia focusing on advanced packaging, FusionAP's establishment and development are drawing significant attention from the Malaysian government and industrial capital.
According to the official funding announcement, FusionAP was founded and is led by a team of senior executives from Intel and TSMC. One of its founding core members, CEO Ooi Teng Chow, previously led and established Intel's advanced packaging business in Malaysia during his tenure there, bringing deep technical background and industry connections to the company. Co-founder Peter Chavart previously served as General Manager of Intel's Disaggregated Manufacturing Organization and is also a key figure in the packaging field. Founded in 2025, FusionAP aims to provide outsourced semiconductor assembly and testing services to global semiconductor companies from a geopolitically neutral stance, helping international clients reduce over-reliance on single-region production capacity amidst the restructuring of global supply chains.
On the core technology front, FusionAP is committed to developing an OSAT platform based on 2.5D and 3D packaging technologies, and plans to collaborate with leading global research institutions to jointly tackle key technologies such as silicon interposers and hybrid bonding. The company positions itself as a "one-stop" partner from prototype development to mass production, connecting global chip designers, wafer fabs, and technology partners.
This funding round represents not just the start of a startup, but also the embodiment of Malaysia's national will. As the world's sixth-largest semiconductor exporter, Malaysia holds approximately 13% of the global semiconductor packaging and testing market, but has long been confined to traditional wire bonding packaging, remaining in the mid-to-low end of the value chain. With the explosive demand for AI computing power, there is a severe shortage of 2.5D/3D advanced packaging capacity used to connect GPUs and HBM memory, providing Malaysia with an opportunity to move up the value chain. To this end, the Malaysian government has designated the development of advanced packaging as a key component of its National Semiconductor Strategy, setting a vision target of capturing 7% of the global advanced packaging market by 2035.
Another key identity of FusionAP is being a founding member of the "Malaysia Advanced Packaging Consortium," which also includes industry players such as SkyeChip, Inari Amertron, Pentamaster, and NSW Automation. These parties are respectively tackling areas like High Bandwidth Memory (HBM) chip design, advanced packaging assembly, automated test equipment, and high-precision liquid dispensing systems. The consortium received an R&D grant of 92 million Ringgit (approximately $23.42 million) from the Malaysia Science Fund, matched by 93.8 million Ringgit (approximately $23.88 million) in R&D funding from industry members, achieving a joint government-private sector effort within 24 months.
It is estimated that the consortium requires approximately 400 million Ringgit (around $102 million) to establish an advanced packaging pilot production line, and about 2 billion Ringgit (around $509 million) in investment if further expanded to large-scale mass production. Although still some distance from mass production, FusionAP's move has already achieved a breakthrough from zero in Malaysia, transitioning the country's semiconductor narrative from cost-driven backend assembly to technology-intensive frontend advanced packaging.
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