Malaysia’s sovereign wealth fund Khazanah Nasional Bhd said on Friday it has invested into the Malaysia-based private equity Cambrian Fund and US artificial intelligence firm Syntiant Corp.

Khazanah said in a statement that the firm, through its initial MYR 1 billion ($220 million) allocation via Dana Impak, have announced two strategic investments to drive greater growth and innovation in Malaysia’s Industrial Revolution 4.0 (IR4.0) technologies and capacity development; and boost research and development (R&D) in AI and semiconductors technologies.

Khazanah announced its partnership with the Co-founders of Vitrox Corporation Berhad, a Malaysian automated inspection equipment and solutions firm, and Southern Capital Group, a small and medium-sized enterprise (SME)-focused regional private equity firm, by investing into the Cambrian Fund.

The Cambrian Fund is dedicated to support entrepreneurs and SMEs focusing on IR4.0 technologies such as machine vision, AI and robotics.

The fund will play a role in transforming the semiconductor and advanced manufacturing ecosystem in Malaysia and beyond by unlocking growth opportunities, nurturing greater local
participation and supporting innovative entrepreneurs and SMEs to scale and compete regionally.

In tandem, the fund aims to harness the experience and collaborate with Malaysian industry leaders to provide invaluable expertise, mentorship and networks in support of Cambrian Fund’s investments.

The Cambrian Fund achieved a first closing of MYR 100 million ($22.34 million) with Khazanah as one of its anchor investors.

To further strengthen the Malaysian semiconductor ecosystem, Khazanah also announced an investment in Syntiant, an edge AI company based in Irvine, California.

The firm is recognized globally as a leader in providing innovative hardware and software solutions for edge AI deployment.

Syntiant’s purpose-built silicon and machine learning models are deployed globally across a wide range of consumer and industrial use cases, from earbuds to automobiles.

Its commitment to establish a world-class AI R&D center in Malaysia is a key strategic benefit of Khazanah’s investment.

The center will drive technological innovation and development, contributing to Malaysia’s ambition to move up the semiconductor value chain as well as participate in the growing global AI industry.

Partnering with Khazanah and several leading technology investors, Syntiant will utilize fundraising proceeds to acquire 100 percent of the consumer MEMS microphones (CMM)
division from Knowles Corporation (Knowles), which has significant assembly and testing operations in Malaysia.

Knowles’ CMM division is a leading manufacturer of high performance SiSonic™ micro-electro-mechanical systems (MEMS) microphones, essential for voice and audio in smartphones, smart speakers, wearables and other applications in automotive and household appliances.

The acquisition allows Syntiant to offer global customers a complete turnkey solution for always-on audio and speech applications.

In 2023, the CMM division employed over 700 people in Malaysia who will benefit from the value creation of this investment.

“The Malaysian electrical & electronic (E&E) sector is a key driver of the nation’s economy contributing to 40 percent to the country’s exports in 2023,

“With semiconductors at its core, Malaysia is today the sixth largest semiconductor exporter globally, commanding 13 percent of the global market share for packaging, assembly and testing” said Amirul Feisal Wan Zahir, Khazanah Managing Director.

“Through Khazanah’s Dana Impak investments, the Cambrian Fund is aligned with the government’s efforts in fostering greater growth, innovation, local talent development and integration into the global supply chain while enhancing international market ties and creating opportunities for Malaysian companies to expand globally,” he said.

He also noted the investment in Syntiant underscores the firm’s commitment to developing an advanced semiconductor ecosystem in Malaysia.

“By supporting Syntiant’s expansion here in Malaysia, we enhance the nation’s technological capabilities while creating high-skilled, high-income job opportunities for Malaysians,

“This effort aligns with our strategic priorities to drive economic and technological advancements in the country,” he added.

Meanwhile, ViTrox Co-founder and group Chief Executive Officer Chu Jenn Weng said Khazanah’s support empowers the firm to nurture a new wave of home-grown entrepreneurs and SMEs driving IR4.0 innovations—spanning machine vision, AI, robotics, supporting the advancements in the semiconductor industry and beyond.

“By fostering close collaborations among industry leaders, venture capitalists, and government-linked investment companies, I am confident we can build a resilient and thriving local tech ecosystem,

“Together, we will elevate Malaysia’s global standing in advanced technologies and cultivate world-class champions in the tech sectors,” he added.

Southern Capital Managing Director Kenneth Tan said the firm is partnering with the Co-founders of ViTrox to help fund the next generation of technology leaders in Malaysia and beyond.

“Having Khazanah as part of our first close is validation of Cambrian Fund’s strategy of leveraging on deep industry knowledge and networks to identify, invest and accelerate the development of high potential companies in some of the most exciting sectors of the global economy,” he added.

Kurt Busch, Chief Executive Officer of Syntiant, said that the investment has enabled the firm to execute on its growth strategy, while creating unparalleled value for global
customers.

“By establishing a world-class AI R&D center in Malaysia, we’re not only expanding our footprint but also investing in the country’s vibrant technological ecosystem,

“This investment marks a pivotal moment for Syntiant as we integrate MEMS microphone technology into our AI-driven solutions to bring about the next generation of intelligent interface,” he added.

According to the statement, Khazanah’s initiative in the semiconductor and advanced manufacturing sector through Dana Impak aligns with national economic policies such as the GEAR-uP Program, Ekonomi MADANI framework and New Industrial Master Plan 2030 (NIMP 2030), supporting the National Semiconductor Strategy to strengthen the local ecosystem and Malaysia’s position in the global supply chain.

It is also aligned to its Advancing Malaysia strategy anchored by A Nation That Creates framework that aims to boost national productivity, innovation and competitiveness. 

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