Reaching for every Opp-ortunity

“SEMICONDUCTORS will be the new oil and gas” – says integrated circuit (IC) design service provider Oppstar Bhd founder and co-chief executive officer Ng Meng Thai.

Whoever “dominates” the technology, he says, will have the power to dominate the world.

Oppstar, an IC design service provider, has carved out a niche in front-end IC design – an area traditionally led by multinational giants – making it an attractive opportunity for investors eyeing Malaysia’s semiconductor landscape.

Ng, however, is quick to point out that ambition alone is not enough to succeed in this highly competitive field.

“Design is the starting point for semiconductor product realisation. Without proper design, there is nothing for foundries or assembly houses to manufacture,” he tells StarBiz 7.

At its core, Oppstar’s strength lies in design capabilities. Ng believes the company’s engineering expertise positions it strongly as global demand for advanced chip solutions accelerates.

“We are no jaguh kampung,” he says, underscoring that the group’s capabilities are not just strong within Malaysia, but also competitive on a global scale.

Investor interest spiked after the announcement of a RM1.11bil collaboration between Malaysia and Arm Holdings Plc in early March 2025, with analysts stating that Oppstar would be among the first phase beneficiaries of the partnership.

The two other companies are Key Asic Bhd and non-listed company SkyeChip Sdn Bhd.

This led Oppstar shares to spike up 40% to 66.5 sen on the morning of March 7, 2025, a day after the announcement.

Under the deal, Malaysia’s Economic Affairs Ministry and the UK-based semiconductor giant will each set their own selection criteria for local companies eligible to access Arm’s technology for the design, development and eventual production of “Malaysia-made” chips.

While the government has yet to reveal the full list of participating companies, Ng remains confident about Oppstar’s readiness to capitalise on the initiative.

“I would say Oppstar is much more visible compared to other local companies – especially startups – when it comes to capitalising on the incentive of the government initiative,” he says, noting that setting up a chip design firm in Malaysia is highly niche and challenging.

“Any government incentive is welcome, but success ultimately boils down to whether a company has the financial strength, technical expertise and market access to make full use of it,” he adds.

He stresses that semiconductor product development is costly, often requiring investments of RM50mil to RM100mil just to bring a chip to market.

Founded back in 2014, Oppstar has seen its earnings move in an uptrend in line with the industry growth. And having been among the few IC design services providers in Malaysia, Oppstar remains as an attractive stock for investors.

However, the group’s earnings started to go downhill from the fourth quarter of 2024 (4Q24).

Oppstar recorded a 71.63% fall in net profit to RM1.56mil during the quarter, the lowest since its listing.

The situation worsened with two consecutive quarters of losses in 2Q25 and 3Q25, leaving only two brokerages maintaining a “hold” call on the stock, with an average target price of 53.5 sen at the time of writing.

Despite the headwinds, Ng says Oppstar is focused on broader transformation efforts. Beyond providing design services, the company is collaborating with industry partners to develop specific semiconductor products.

While these projects may take time to bear fruit due to the usual lengthy development cycles in the sector, he believes the projects are essential for the group’s long-term sustainability.

“Our new initiatives are in line with our vision to move up the value chain.

“They may not yield immediate results, but they strengthen our foundation for the future,” he says, adding that a typical project can take 12 to 18 months to complete when it comes to chip design.

With additional time needed for wafer fabrication and product testing, Ng explains that any new product development today will only impact revenue two to three years down the line.

With Malaysia aiming to position itself as a regional semiconductor design hub, Oppstar’s steady expansion into markets like Japan, Taiwan and India underscores its regional ambitions.

Ng says the group has also reprioritised some of its expansion plans, placing greater focus on Japan, as market conditions change.

This came after a revision of Oppstar’s proposed use of proceeds initially earmarked for new offices in Singapore, Taiwan and Japan, along with a new Kuala Lumpur office.

The company also reduced its planned investment in Penang and dropped the proposed office in India altogether.

“Under current market situations, we need to be more careful about any new spending. I think we want to spend money in a more careful way,” he quips.

For now, Oppstar is intent on playing to its strengths.

With a proven design capability, a growing regional presence, and a strategic pivot into product development, the company is quietly positioning itself to be a key beneficiary of the semiconductor boom – not just in Malaysia but across Asia.

As Ng puts it, “We built this company patiently over 11 years.

“Semiconductor success is not an overnight story – it’s about building capabilities, step by step.”