IN a move marking its return to Malaysia’s technology scene, Taiwanese electronics company, Phison Electronics Corp, is set to inject RM100mil into a startup named MaiStorage.
This initiative represents a fresh chapter for Phison, following its initial setback in 2012 when its first foray into Malaysia fell short.
The revival of Phison’s interest in Malaysia underscores a strategic shift in approach, as the company seeks to capitalise on the burgeoning potential of the country’s tech landscape.
Co-founded by Malaysian Datuk Pua Khein Seng, who is also widely regarded as the inventor of USB drive, Phison specialises in NAND flash integrated circuit (IC) and storage solutions.
Addressing an audience at the recent KL20 Summit, Pua, who is now the chairman and chief executive officer of Phison, said: “Malaysia’s time is now.”
Reflecting on past challenges, Pua acknowledges the hurdles faced during Phison’s earlier venture, citing the lack of research and development (R&D) activities in Penang and the talent drain to neighbouring Singapore.
“During that time, there were not many R&D activities in Penang, and many undergraduate engineers trained by us were enticed to Singapore,” Pua tells StarBizWeek.On the reason behind the insignificant amount of front-end design companies in Malaysia, he cites the high investments involved and an underdeveloped ecosystem.
“If you design smartphone chips in Malaysia, who’s going to use them?” Pua questions, underscoring the market constraints.
However, with the establishment of MaiStorage, Pua highlights the group’s commitment to Malaysia’s semiconductor industry, noting the high-growth potential of IC design and the economic benefits of locally-produced technology.
Pua emphasises the goal of creating an environment where top talent chooses to contribute to Malaysia’s tech growth.
Sharing his vision for the future, Pua emphasises his first step: convincing the government to prioritise locally designed ICs.
He highlights that Malaysia spends billions on importing information technology -related products.
As such, using locally designed ICs would yield substantial cost savings for the government, he argues.
While the focus is on gaining government support by offering competitive pricing, Pua also emphasises the importance of engaging private companies.
“Currently, Malaysia pays a premium for imported products,” Pua notes.
Additionally, Pua justifies Phison’s commitment to Malaysia, attributing it to geopolitical tensions that compel Western customers to urge Phison to diversify its operations to the country
While options are available in India and Vietnam, Pua opts for Malaysia due to the opportune timing.
Pua’s tone shifted as he expresses optimism about Malaysia’s evolving tech landscape.
“Today, the situation is different,” Pua says confidently.
“Malaysia’s tech ecosystem has evolved significantly, with increased investments and a growing emphasis on nurturing local talent,” he adds.
Addressing the utilisation of the RM100mil capital injection into MaiStorage, Pua says the group’s strategic priorities will be focused on engineer training, business development, and operational capital. By July, pending board and regulatory approvals, MaiStorage aims to commence operations, spearheaded by four senior managers – two Malaysians and two Taiwanese – tasked with training a cohort of 50 to 70 engineers over 18 months.
Starting salaries are estimated at RM6,000 for undergraduates and RM8,000 for graduates, following training and acceptance.
Pua also highlights Phison’s commitment to the local tech future, unveiling plans for a comprehensive RM1bil technology transfer encompassing data centres, electric vehicle storage, and generative artificial intelligence, ushering Malaysia into a new era of tech innovation.
The MaiStorage business model mirrors Phison’s successful expansion to Hefei, China, in 2015, with plans to replicate this model in Malaysia.
“We started in Hefei in 2015 from scratch and our initial focus was on sourcing students and providing training,” Pua explains.
“Eighteen months later, Hefei began engaging in design projects for leading companies such as Toshiba, Micron, and Huawei,” he adds.
Looking ahead, Pua emphasises MaiStorage’s ambitious timeline for an initial public listing (IPO) within three to four years, leveraging on Phison’s experience as a catalyst.
“MaiStorage has a rich father (Phison),” Pua says, alluding to the company’s accelerated trajectory towards IPO.
This goal reflects Phison’s successful journey to a public listing in 49 months, setting a precedent for MaiStorage’s accelerated IPO target.
With MaiStorage aiming for an IPO within a shorter timeline than Phison’s own journey, Pua’s aspiration to showcase Malaysian talent and capabilities resonates with the broader ambition to attract global talent back to Malaysia, fostering a vibrant start-up ecosystem.
Phison’s visions for MaiStorage embodies more than financial investment – it symbolises a strategic plan aimed at nurturing local talent, fostering R&D initiatives, and propelling Malaysia to the forefront of global tech innovation, according to Pua.
The collaborative effort marks the beginning of an exciting chapter in the country’s tech narrative, poised to shape the future of the country’s semiconductor industry.