- Current focus is on final assembly, working with local suppliers to move Penang up the equipment value chain
- Malaysian sourcing below 10% today, with target of 25% by 2027 and 40% longer term to avoid China-origin scrutiny
It is undeniably tough for Chinese tech companies to expand in sensitive technology areas against the backdrop of the US-China fight for global tech supremacy. One common response has been to build new corporate footprints in Asean, often under different names, to access markets, capital and supply chains with less China exposure.
Singapore-based Galatek Technologies Singapore Pte Ltd, an AI-enabled automation, semiconductor equipment and life-science technologies company that opened a factory in Penang last week, appears to fit this pattern. It has strategic links to Hangzhou-based Megarobo Technology.
During an interview with Digital News Asia in Penang last week at its plant opening, Sammi Ng (pic), Head of R&D confirmed that Galatek Technologies has a close strategic partnership with Megarobo that extends from tapping its, “supply chain, procurement, manufacturing, its sales network and even customer support.”
Nonetheless, the Malaysian supply chain is equally important from a localisation aspect to be able to ship its products assembled in Penang to customers overseas with an immediate target of 25% localisation by 2027 and 40% next (no timeframe was given), in order to “meet Country of Origin (COO) certification, for our customers,” she said.
This is critical to its customers, especially semiconductor and life-science multinationals, that will want equipment that is less exposed to China-origin scrutiny. A Malaysian COO can help with import paperwork, internal procurement approval, and, most importantly, avoiding the perception that the product is simply Chinese equipment routed through Malaysia.
While she emphasises that Galatek Technologies is a startup, based out of Singapore, public records show the Galatek trademark was previously held by MegaRobo Technologies (Singapore) before being transferred to Galatek Technologies Singapore, while Galatek-linked product materials continue to reference some MegaRobo systems. Jian Shen, a Galatek Technologies director and COO also appears to have previously held a senior role at MegaRobo. Together, these point to a close commercial, IP and personnel link.
No dancing robots here, MegaRobo is a Chinese robotics and AI automation company that builds automated systems for laboratories and advanced manufacturing. Founded in 2016, it filed a prospectus last June for a Hong Kong IPO, but the application lapsed on 25 Dec 2025. No renewed filing has been submitted.
That IPO hiccup did not stop Galatek from raising US$30 million (RM123.5 million) last December. The investors were not disclosed at the time, nor were the founders. The latter is highly unusual for a startup announcing such a sizeable Series A round.
David Tian, also known as Zaiwei Tian, is CEO and also a director. An InvestPenang statement last week, however, identified Granite Asia as one of Galatek’s investors. Singapore company records obtained by DNA show Terence Jen, a Granite Partner, was appointed as director in Jan 2025 with the VC firm holding a 34.4% stake in Galatek Holdings Pte Ltd, which owns 100% of Galatek Technologies. It is common for VC firms not to immediately disclose their investments made, usually done for competitive reasons.
In an ebullient LinkedIn post on the Penang factory opening, Granite Asia, founded in Singapore and Silicon Valley in 2000 and claiming it has backed 18% of Asia’s billion-dollar startup companies, described Galatek Technologies as “a global provider of AI-enabled automation, semiconductor equipment, and life science technologies.” A bold claim for a company incorporated only about 18 months ago, with 78 staff today, including around 30 to 35 in semiconductors and 20 to 25 in life sciences.
Granite Aisa’s bullishness becomes easier to understand, however, if Galatek is drawing on MegaRobo’s strong technology base. Data from its IPO filing showed it had 464 R&D staff, spent RMB394.1 million (US$58.3 million) on R&D in 2024, and held more than 450 registered patents in China.
That context makes Galatek’s Penang targets look less far-fetched. The company has invested an initial US$2 million in the facility, and plans to invest US$60 million over the next three years, and US$100 million within five years as it expands capacity. Those would be ambitious numbers for a young standalone startup. They look more achievable when Galatek is collaborating closely with MegaRobo’s technology and R&D base.
It also explains why Penang rolled out the red carpet for the modest investment, with Chow Kon Yeow, Chief Minister and Loo Lee Lian, InvestPenang CEO attending the plant opening last week, which only had its first batch of equipment in.
“The US$2 million initial investment represents the first phase of our expansion in Malaysia and covers cleanroom infrastructure, equipment installation, engineering capabilities, and operational setup,” said Jian, its COO.
Starting tiny
While Galatek said Penang will serve as a key production and delivery centre supporting customers across Southeast Asia and international markets, it is starting tiny – with three staff hired at present but looking to hire between 20 to 30 experienced executives this year in roles spanning across engineering, operations, procurement, sales and technical support functions. A HR exec tells DNA the target is for the facility to grow to approximately 100 employees within the next five years.
When asked about the low headcount, Sammi explained, “Being a very advanced equipment solution company, we don’t focus on mass production. In this facility, for now, we will focus on final assembly while relying on our supply chain at the component and modular assembly level. That’s why we are very agile using our supply chain for component and modular assembly level. Then, once our products hit mainstream and demand and volume increases, we can ramp up the necessary resources to a larger scale in Penang.”
Despite the focus on final assembly, Sammi, who in her previous company was involved in setting up R&D operations in Kuala Lumpur and Penang, reiterates that the talent they will hire has to be top notch. “These are very high end machinery needing top skills during validation testing before sending to customers. We need very specialised talent with manufacturing technical experience,” she said, expressing confidence that while it will be challenging, this talent pool exists within Penang’s world class semiconductor ecosystem.
Jian made the point as well that the value of a strategic hub should not be measured solely by headcount. “Our focus is on building a highly skilled team with expertise in advanced manufacturing, automation, robotics, optical engineering, software, AI, and application engineering. In the initial stages, we will recruit predominantly local talent while selectively bringing in experienced specialists from our global operations to support knowledge transfer, technical training, and the establishment of best practices.”
The Penang semicon ecosystem and boosting local sourcing to 40% for the all-critical Country of Origin
While Sammi acknowledges that Penang’s supplier base was historically geared towards electronics assembly and packaging (not the precision robotics/optics space that Galatek Technologies is in), she said it has transformed significantly over the past decade.
“I see that in the drive from the airport, looking at all the international companies that are here now.” At the same time she notes that Malaysian suppliers have developed their capabilities through investments and collaborations, striving to meet the high specifications for precision and customization that the likes of Galatek are demanding.
With its own equipment, a combination of high precision and standard parts, she said Galatek is looking to increase the percentage of locally sourced components from Malaysia and Southeast Asia from the current below 10% to 25% by 2027, “to be able to ship (products) to our customers worldwide. Our team from Singapore has been working very hard with Malaysian suppliers since last year, sharing technology roadmaps and working on new products,” she said with an important target of 40%. “Eventually we hope to move towards 40% localisation from our Malaysian suppliers that will satisfy the minimum COO (Country of Origin). That will be the journey.”
If successful, that journey will see its Penang factory moving up the value chain with Galatek describing Penang as part of Malaysia’s value-chain ascent, focusing on advanced equipment manufacturing, system integration, assembly, testing and delivery activities, supporting industries including semiconductors, advanced electronics, and life sciences.
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