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Vertex co-leads $2m for Malaysian chip startup FusionAP
FusionAP, a Penang-based semiconductor startup focused on outsourced assembly and test packaging, has raised US$2 million in pre-seed funding.
The round was co-led by Vertex Ventures Southeast Asia and India and Southern Capital Group, alongside a matching grant from Malaysia’s Ministry of Science, Technology and Innovation.
The company was founded by Teng Chow Ooi, who was described as the first employee at Intel’s US$7 billion advanced packaging plant in Penang, and Peter Chavart, who led the development of Intel packaging technologies EMIB and Foveros.
The round marks an early bet on semiconductor manufacturing in Southeast Asia, a segment that regional venture firms have backed less often at the pre-seed stage.
🔗 Source: Vertex Ventures Southeast Asia and India
🧠 Food for thought
Implications, context, and why it matters.
This funding fits Malaysia’s semiconductor plan
- FusionAP is part of the Malaysia Advanced Packaging Consortium (MAPC), a group of five local companies backing the country’s push into advanced packaging 1.
- The consortium wants a 7% slice of the global advanced packaging market, which Hong Leong Investment Bank (HLIB) put at about US$5 billion by 2035 1.
- The grant sits within a wider 185.8 million ringgit (US$47.3 million) research and development effort from government and industry to build those capabilities 2.
- FusionAP wants to become Malaysia’s first domestic outsourced semiconductor assembly and test (OSAT) provider focused on advanced packaging. Under the MAPC grant program, it is also working on high-end intellectual property (IP) transfer, which fits the founders’ Intel packaging backgrounds 1.
How the startup fits the race for AI chip capacity
- Advanced chip packaging is concentrated in a handful of regions, which raises supply risks and leaves room for new players 1.
- AI-related packaging capacity remained tight and was about three times short of AI demand, said TSMC CEO C.C. Wei 3.
- Malaysia is presenting itself as a neutral hub for companies seeking more varied supply chains 1.
- That gives FusionAP an opening in advanced packaging, where margins can reach 40% to 50% versus 15% to 20% for traditional packaging 1.
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