Oppstar Bhd has restructured the delivery framework of an artificial intelligence chip development project with a Yokohama-based client, replacing an earlier tripartite arrangement with separate design services agreements and formalizing a US$2.9 million contract for its engineering scope, according to The Edge Malaysia.
The revision involves Oppstar Microelectronics Sdn Bhd, a wholly owned subsidiary, which signed a new design services agreement on May 25 covering specific engineering and design migration work for a reconfigurable edge AI chip. The contract, valued at US$2.9 million, will be paid progressively based on milestone completion and is expected to be completed within 20 months.
Project structure revised after operational review
Oppstar said it mutually terminated a previously signed statement of work on March 31, 2026, alongside partner Silicon X, following an operational review of workflows under the original structure.
The company said the revised arrangement is intended to improve clarity in project execution and strengthen internal coordination.
"The restructuring is intended to provide a clearer project delivery framework, improve reporting lines and enhance project management efficiency," Oppstar said in a filing, adding that it would allow more effective deployment of engineering resources.
The new structure separates responsibilities between parties while maintaining continuity of the underlying AI chip development program with the same Yokohama-based client.
Edge AI chip scope and technical responsibilities
Under the updated agreement, Oppstar Microelectronics will be responsible for full-spectrum chip design and physical implementation of a reconfigurable AI processor, including architecture optimization and delivery of a final tape-out database.
The client is a technology venture based in Yokohama focused on edge artificial intelligence solutions, developing hardware and software designed to enable real-time AI processing directly on devices, particularly for industrial automation and infrastructure applications.
Oppstar said any changes in project scope that affect engineering effort or timelines will require written amendments and revised commercial terms agreed upon by both parties. The client may only terminate the agreement after completion of the multi-project wafer phase, subject to a minimum three-month notice period.
The company said the collaboration is expected to support new revenue streams and strengthen its position in edge AI and integrated circuit design migration services. "The board believes that the collaboration has potential and would contribute positively to Oppstar's future earnings and improve its financial position," it said.
IC design role within semiconductor value chain
Oppstar Technology operates as a fabless IC design house, focusing on chip architecture and design rather than manufacturing.
The company provides end-to-end design services, including front-end development such as system architecture and RTL design, back-end physical design including layout and timing closure, and post-silicon validation after fabrication.
It also offers turnkey ASIC and SoC development services, supporting customers across telecommunications, automotive, industrial electronics, and AI-related applications. Chips designed by Oppstar are typically manufactured by external foundries such as TSMC or Samsung.
Founded in 2014 and headquartered in Penang, Oppstar has grown into one of Malaysia's larger front-end IC design firms, employing several hundred engineers.
Policy backdrop and ecosystem development
Oppstar operates within Malaysia's broader semiconductor development strategy, which focuses on expanding domestic IC design capabilities, with support primarily structured through industrial policy rather than direct fiscal subsidies.
This includes government-led initiatives to provide access to Arm intellectual property and design tools under a national IC design program aimed at strengthening Malaysia's position in front-end semiconductor development. The Ministry of Economy coordinates the initiative as part of the country's semiconductor strategy.
Article edited by Jerry Chen
