CHIPX Plans ASEAN’s First 8-Inch GaN/SiC Wafer Fab in Malaysia to Expand Power and Photonics Capacity

Semiconductor and photonics company CHIPX has announced plans to build an 8-inch (200mm) wafer fabrication facility in Malaysia, describing the project as the ASEAN region’s first 200mm fab dedicated to GaN and SiC technologies. This signals an effort to expand front-end manufacturing capacity in Southeast Asia for advanced power and photonics device with areas seeing strong demand from AI infrastructure, electrification, and energy markets.

CHIPX said the initiative involves international investors and Taiwanese semiconductor partners, though specific partner names, customers, and project economics have not been disclosed in the public announcement.

Power Devices and the Photonics Layer of AI

Gallium nitride (GaN) and silicon carbide (SiC) are increasingly important for high-efficiency power conversion, enabling systems that need to handle more power with less energy loss commonly associated with use cases such as AI data centers, EV charging and drivetrains, renewable energy systems, energy storage, and industrial automation.

Beyond power devices, CHIPX and broader industry coverage connect the fab plan to photonics and optical interconnects that helps data centers move information faster while managing power consumption. As AI workloads scale, data movement inside and between servers becomes a bigger part of overall energy use, and photonics is increasingly positioned as a key enabler for higher-bandwidth, more efficient connectivity.

CHIPX also frames the initiative as more than a single manufacturing site, highlighting plans for technology transfer, engineering collaboration, and local talent development. That messaging suggests a longer-term strategy to build regional capability in compound semiconductors and photonics, not just add capacity.

How this fits Malaysia’s national semiconductor agenda

CHIPX explicitly aligns the fab with Malaysia’s National Semiconductor Strategy (NSS) and the New Industrial Master Plan (NIMP 2030) to help Malaysia move up the semiconductor value chain, building on its established strength in assembly and test while attracting more technology-intensive activities.

Malaysia has been positioning itself as a deeper, more strategic node in the global semiconductor supply chain. In 2024, Malaysia accounts for roughly 13% of global semiconductor testing and packaging, and that the government is targeting about US$107 billion in semiconductor-related investment. In that context, a proposed 200mm GaN/SiC fab fits squarely into Malaysia’s ambition as demand for power and photonics devices continues to rise alongside AI infrastructure and electrification.