PETALING JAYA: Oppstar Bhd
, an integrated circuit (IC) design services provider, sees growth opportunities in the semiconductor industry despite facing headwinds.
In a filing with Bursa Malaysia last week, the group noted it faced headwinds due to increased price sensitivity in some of its markets.
“Despite these challenges, the stabilising growth in the semiconductor industry still offers the group unique opportunities to solidify its market position and expand strategically,” Oppstar stated.
Oppstar added in the near term, its operations will continue to focus on its critical existing markets.
“Alongside this, a vital aspect of the group’s strategy involves seeking and nurturing partnerships that offer long-term business opportunities. The group aims to collaborate with partners who align with its business goals and can contribute to its sustained growth and stability in the industry,” it said.
For the first quarter of financial year 2025 (FY25) ended June 30, Oppstar posted a net profit of RM2.1mil on the back of RM13.4mil in revenue compared to the RM5.3mil earnings and RM15.6mil revenue it posted in the same period a year ago.
It is actively developing strategies to ensure more sustainable revenue streams, including diversifying its service offerings to enhance recurring revenue, thus laying a solid foundation for financial resilience and growth.
Oppstar added it was also exploring ways to streamline and improve its operations.
“The group seeks value-added services by partnering with foundries to manufacture chips. The group acknowledges that there is still much to develop in the post-silicon segment, requiring significant investment and innovation,” it said.
Oppstar added it received enquiries on potential projects, reflecting strong interest and opportunities within the industry.
While some of these projects are still in the discussion stage, and securing them might take time, some of these initiatives have been obtained as Oppstar moves into the second half of FY25 ending March 31.
In its FY24 annual report, Oppstar’s chairman, Prof Datuk Dr Siti Hamisah Tapsir, said the group was confident that its strategic investments in FY24 would enhance its competitive edge for sustained growth in the dynamic semiconductor landscape.
The group is building on the success of its Japanese subsidiary, Oppstar Japan Co Ltd, to serve its international clients better and tap into new revenue sources.
In December last year, the group acquired a 100% equity interest in Oppstar Japan Co Ltd (formerly known as Tag Team Corp) through its subsidiary, Oppstar Technology.
“Our presence in Japan enables us to expand our customer base immediately,” Siti said.
Oppstar’s plans include developing foundry relationships to offer end-to-end integrated circuit (IC) manufacturing services to expand capabilities beyond chip design.
“We will also continue to explore and develop new value-added services to meet the evolving needs of our diversified client base,” she said.
In its FY24 annual report, Oppstar noted its collaboration with Samsung Electronics Co Ltd signified a step towards adding its range of services.
The partnership will allow Oppstar to assist its customers in bringing specialised chips to market and provide chip manufacturing services, IC design and post-silicon validation services for the chips to be fabricated by Samsung.
The International Trade and Industry Ministry’s National Semiconductor Strategy (NSS) identifies IC design as a critical area for development to enhance Malaysia’s competitiveness in the global semiconductor market.
According to Oppstar’s annual report, it hoped to benefit significantly from these government efforts.
The company planned to increase its workforce by a double-digit percentage, collaborating with universities to attract and train new talent to ensure it had the skilled professionals to meet the growing demands of its expanding project portfolio.
Oppstar aims to expand its geographical presence by targeting new locations that offer strategic advantages for its business, particularly those near significant foundries and growing semiconductor markets.
It foresees foundries looking for opportunities to work with IC design companies capable of delivering turnkey projects.
“In addition to organic growth, we will continue to pursue strategic investments and acquisitions that complement our IC design business.
“These investments will broaden our service offerings and enhance our geographical reach, enabling us to serve our clients better and capture new market opportunities.
“Furthermore, we plan to expand our post-silicon validation services to complement our IC design services.
“By offering a comprehensive suite of solutions, we aim to provide end-to-end support to our customers, helping them bring their specialised chips to market more efficiently and effectively,” the annual report added.
