Malaysia Partners with Arm in $250M Deal to Advance AI Chip Design

The decade-long agreement aims to transform Malaysia from a chip assembly hub into a leader in semiconductor design and AI chip production.

Malaysia will invest $250 million over 10 years to access Arm’s chip design intellectual property, including seven high-end compute subsystems.
The partnership includes training 10,000 Malaysian engineers and establishing Arm’s first office in Southeast Asia to support regional expansion.
Malaysia aims to produce locally designed AI chips within five years, accelerating its National Semiconductor Strategy goals.
The initiative is expected to foster 10 local chip companies with a combined annual revenue target of up to $20 billion.
This move positions Malaysia as a key player in the global semiconductor supply chain, leveraging its non-aligned status in the ongoing U.S.-China tech tensions.