Malaysia to Develop Its Own AI Chips Through Strategic Partnership with Arm Holdings
Malaysia is set to become a key player in the global semiconductor industry through a strategic collaboration with Arm Holdings Plc, marking the country’s entry into AI chip manufacturing.
High-Tech Collaboration
Prime Minister Datuk Seri Anwar Ibrahim announced that through this partnership, Malaysia will design, manufacture, test, and assemble high-tech AI chips domestically before distributing them globally. This initiative aligns with the National Semiconductor Strategic Plan (NSS) introduced last year, signifying Malaysia’s move into the second wave of chip development.
According to Anwar, the partnership will focus on three key areas:
1. Local Talent Development – A comprehensive training program will be launched to equip 10,000 engineers with integrated circuit (IC) design skills, strengthening Malaysia’s semiconductor workforce.
2. Technology Access – Selected local companies will gain access to Arm’s advanced technologies and portfolio, enabling them to compete on a global scale.
3. Semiconductor Product Development – The collaboration aims to accelerate the growth of locally-made semiconductor products, reinforcing Malaysia’s position in the industry.
Economic Impact & Investment Opportunities
In an exclusive interview with Bloomberg, Minister of Economy Datuk Seri Rafizi Ramli highlighted that this agreement will pave the way for Malaysia to establish a fully integrated semiconductor ecosystem within the next decade.
Through this initiative, Malaysia is expected to:
• Accelerate the production of locally-made AI chips.
• Create up to 10 new chip companies with an estimated annual revenue of USD 20 billion.
• Contribute one percentage point to the country’s GDP.
Additionally, Arm Holdings will open its first ASEAN office in Kuala Lumpur, aiming to expand its market reach to Australia and New Zealand.
The Prime Minister also expressed his gratitude to the ministries and government agencies that facilitated this collaboration, including MITI, MIDA, the Ministry of Finance, and the Ministry of Economy.
