Silterra Malaysia

Silterra Malaysia Sdn. Bhd. is a Malaysian semiconductor manufacturer and wafer foundry headquartered in Kulim, Kedah. The company was established in November 1995 as part of Malaysia’s effort to develop domestic front-end semiconductor manufacturing. At the time, Malaysia already had a substantial presence in semiconductor assembly, testing, and other back-end activities, while the government sought to build capabilities further upstream in wafer fabrication and integrated-circuit production. The company was initially known as Wafer Technology (Malaysia) Sdn. Bhd. It adopted the Silterra Malaysia Sdn. Bhd. name in December 1999 and officially commenced operations in 2001. Its manufacturing site was developed with three cleanrooms and was designed to provide wafer fabrication services rather than operate primarily as a consumer-facing chip brand. Silterra’s role in the semiconductor value chain is therefore that of a contract manufacturer and technology platform for chip companies, including customers that require CMOS process manufacturing. Its main business is front-end wafer fabrication. In practical terms, the company manufactures semiconductor wafers containing integrated circuits designed by customers or technology partners. Its capabilities are associated with CMOS-based process manufacturing, a foundational technology used across many categories of digital, analog, mixed-signal, and application-specific integrated circuits. The available reference material does not provide a complete current process-node list or a definitive catalogue of customer products, so Silterra is best characterized broadly as a specialty and established wafer foundry rather than assigned unsupported technical specifications. Silterra was originally owned by Khazanah Nasional, Malaysia’s government-linked investment institution. The ownership structure changed after the Malaysian government authorized Khazanah in 2016 to sell its stake to foreign investors. In July 2021, Malaysian investment holding company Dagang NeXchange Berhad acquired a 60% interest for RM273 million. CGP Fund, identified in reference material as the Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center, acquired the remaining 40% for RM109.2 million. This transaction placed Silterra under a strategic partnership involving Malaysian and Chinese investment interests while preserving the company’s role in Malaysia’s semiconductor ecosystem. Silterra’s principal manufacturing base remains in Kulim, while its commercial reach extends beyond Malaysia. The company has maintained sales and marketing offices in San Jose, California, and Hsinchu, Taiwan, locations associated with major semiconductor design and manufacturing ecosystems. Its positioning is consequently that of a Malaysia-based international wafer-foundry provider: it combines domestic manufacturing infrastructure with access to customers and partners in global semiconductor markets. The company is not generally known as a retail brand, and its offerings are primarily industrial manufacturing services, process technologies, and fabricated semiconductor wafers. Silterra’s historical significance lies in its connection to Malaysia’s industrial-upgrading policy. Its creation represented an attempt to move the country from a strong back-end manufacturing base toward front-end wafer fabrication, an area requiring significant capital, specialized facilities, process engineering, and cleanroom operations. Its later ownership transition reflects the continuing strategic and financial importance of semiconductor manufacturing to Malaysia. The supplied sources do not establish a separate corporate rebranding, closure, or change of operating status after the 2021 transaction; Silterra is therefore treated here as an active Malaysian semiconductor foundry.

Silterra Malaysia originated in a Malaysian national-industrial strategy to establish front-end semiconductor manufacturing. Before Silterra, Malaysia had developed a well-established semiconductor back-end sector, including assembly and testing. The 1995 project was intended to extend the country’s capabilities into wafer fabrication, where integrated circuits are formed on silicon wafers in specialized cleanroom facilities. The company was founded in November 1995 under the name Wafer Technology (Malaysia) Sdn. Bhd. It was later renamed Silterra Malaysia Sdn. Bhd. in December 1999. Although the project was planned during the 1990s, commercial operations officially began in 2001. The initial facility was equipped with three cleanrooms, providing the physical base for wafer-processing activity in Kulim, Kedah. Silterra was initially owned by Khazanah Nasional. Its creation and ownership reflected the strategic importance assigned to semiconductor manufacturing by the Malaysian government. Rather than selling branded chips directly to consumers, the company operated as an industrial foundry, manufacturing wafers and integrated circuits through customer-facing process services. Its capabilities are broadly associated with CMOS manufacturing, a core semiconductor technology used in a wide range of integrated circuits. The company’s geographic footprint included its Kulim manufacturing base and sales and marketing offices in San Jose, California, and Hsinchu, Taiwan. These offices connected the Malaysian operation with two important semiconductor centers and supported an international customer and partner base. A major ownership transition began after the Malaysian government authorized Khazanah in 2016 to sell its Silterra stake to foreign investors. In July 2021, Dagang NeXchange Berhad acquired 60% of the company for RM273 million. CGP Fund, whose full name is given in the reference material as the Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center, acquired the remaining 40% for RM109.2 million. The transaction transferred ownership from the prior Khazanah structure to a partnership between a Malaysian investment holding company and a Chinese semiconductor-focused investment fund. Silterra’s historical importance is tied to Malaysia’s attempt to move up the semiconductor value chain. Its foundry model supports chip designers and other technology companies that need wafer manufacturing without necessarily owning their own fabrication plants. The supplied reference material does not establish a complete list of current process nodes, customers, product families, or post-2021 operational developments. Accordingly, Silterra is documented as an active Malaysian wafer foundry with CMOS-related manufacturing capabilities, while unsupported technical or commercial details are omitted.

• 2021

  Ownership transferred to DNeX and CGP Fund

  [1]Silterra Malaysiaen.wikipedia.org

  Dagang NeXchange acquired 60% of Silterra and CGP Fund acquired the remaining 40% in July 2021.

• 2016

  Khazanah stake sale authorized

  [1]Silterra Malaysiaen.wikipedia.org

  The Malaysian government authorized Khazanah Nasional to sell its interest in Silterra to foreign investors.

• 2001

  Operations commenced

  [1]Silterra Malaysiaen.wikipedia.org

  Silterra officially began operations at its Kulim facility, which was initially equipped with three cleanrooms.

• 1999

  Renamed Silterra Malaysia

  [1]Silterra Malaysiaen.wikipedia.org

  Wafer Technology (Malaysia) Sdn. Bhd. changed its name to Silterra Malaysia Sdn. Bhd. in December 1999.

• 1995

  Company founded as Wafer Technology (Malaysia)

  [1]Silterra Malaysiaen.wikipedia.org

  The semiconductor project was established in November 1995 to develop front-end wafer-fabrication capability in Malaysia.

A Malaysia-based front-end semiconductor wafer foundry providing CMOS-oriented manufacturing services to international chip companies and technology partners.

• Semiconductor foundry services

  CMOS wafer-fabrication services

  Silterra provides wafer-manufacturing services based on CMOS processes. The service involves fabricating integrated circuits on silicon wafers for external customers and technology partners. CMOS is a basic manufacturing approach used in many digital, analog, mixed-signal, and application-specific semiconductor designs. The supplied sources do not specify a complete current process-node portfolio, so this entry describes the offering at the documented technology level.

• Manufactured semiconductor products

  Semiconductor wafers

  The company manufactures processed semiconductor wafers as part of its front-end foundry activity. These wafers contain integrated-circuit structures produced through controlled fabrication steps in cleanroom facilities. They are industrial outputs supplied within the semiconductor value chain rather than consumer-packaged products sold under a retail brand.

• 2021

  DNeX and CGP Fund acquire SilterraM&A

  Background

  Following the authorization to sell Khazanah’s interest, Silterra underwent a strategic ownership transition.

  Action taken

  Dagang NeXchange Berhad acquired a 60% stake for RM273 million, while CGP Fund acquired the remaining 40% for RM109.2 million.

  Aftermath

  Silterra became jointly owned by a Malaysian investment holding company and a Chinese semiconductor-focused investment fund.

  Transaction consideration. RM273 million for 60% acquired by DNeX; RM109.2 million for 40% acquired by CGP Fund (July 2021)

  Source

• 2016

  Authorize disposal of Khazanah’s Silterra stakeM&A

  Background

  Silterra had been owned by Khazanah Nasional, and the Malaysian government considered a change in ownership that could bring in foreign investment.

  Action taken

  The government authorized Khazanah to sell its interest in Silterra to foreign investors.

  Aftermath

  The authorization created the basis for the later 2021 transfer of ownership to Dagang NeXchange and CGP Fund.

  Source

1. 1Silterra Malaysiaen.wikipedia.org