Embattled flash drive inventor returns to Malaysia with new bet

This column was first published on The Malaysianist, a weekly guide to understanding Malaysia’s current affairs that focuses on money and power. It was edited to reflect Tech in Asia’s editorial guidelines.

Pua Khein Seng, dubbed by some as the father of the USB flash drive, is returning to his home country of Malaysia. The Taiwan-based tech veteran, who is currently the CEO of electronics firm Phison, recently announced that he was going to set up a new venture out of Selangor.

Photo credit: The Malaysianist

Pua is expected to pour in 100 million ringgit (US$24 million) in the startup. Called MaiStorage (Malaysia AI Storage), the company will help Malaysia get into generative AI, Pua said. It will also be located at the upcoming Malaysia Semiconductor Accelerator & IC Design Park in Puchong.

This isn’t Pua’s first business rendezvous with Malaysia though.

In 2012, he domiciled Phison’s R&D center in Penang, but it was liquidated in October 2020.

In an interview with business publication The Edge last year, Pua said Malaysia’s work culture and the country’s market size – as well as aggressive headhunting by Singaporean tech companies – were the reasons why the R&D center didn’t perform in Malaysia.

Image credit: The Malaysianist

This time around, Pua, speaking at the recent KL20 Summit, promised to change a few things with MaiStorage. This includes inking a partnership with government tech agency Mimos – which also has its own chip foundry – to foster technology transfer.

While Pua has yet to state when MaiStorage will be operational, he aims to grow the company with a goal to go public.

Malaysian tech portal Soya Cincau listed some other perks Pua is promising as part of his MaiStorage initiative.

First, Phison will train undergraduate and graduate students instead of hiring market engineers, aiming to make them storage experts within 18 months. Pua expects them to design integrated circuits independently in Malaysia after the training.

Second, MaiStorage will be offering 300 to 500 positions for these undergraduate and graduate designers, who will earn roughly 6,000 ringgit to 8,000 ringgit per month.

Ambitious plans