FusionAP Sdn Bhd, a Malaysia-based advanced semiconductor packaging company, has raised $2 million in a pre-seed funding round co-led by Vertex Ventures Southeast Asia & India and Southern Capital Group.

In a statement on Wednesday, Vertex Ventures said the new funding will be utilized for engineering and process integration, research and development, intellectual property development, and pilot production capacity. FusionAP is also subject to a matching research grant from the Malaysia Science Endowment under the Ministry of Science, Technology and Innovation (MOSTI).

Demand for advanced semiconductor packaging has increased alongside the growth of artificial intelligence applications, while global capacity remains concentrated in a small number of markets, according to the statement.

FusionAP was founded by former Intel and TSMC semiconductor executives led by Ooi Teng Chow, who previously helped build Intel’s advanced packaging operations in Malaysia. The founding team also includes Peter Chavart, former General Manager of Intel’s Disaggregation Manufacturing Organization.

The company is developing an outsourced semiconductor assembly and test (OSAT) platform focused on advanced 2.5D and 3D packaging technologies. FusionAP works with global design houses, foundries, and technology partners from prototype development to production.

FusionAP is also a founding member of the Malaysia Advanced Packaging Consortium (MAPC) alongside SkyeChip, Inari Amertron, Pentamaster, and NSW Automation. The consortium was formed to support the development of Malaysia’s advanced semiconductor packaging ecosystem.

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