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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.

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Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
Logos of ARM Holdings Plc and SoftBank Group Corp sit on a background during a news conference in London, U.K., on Monday, July 18, 2016. SoftBank Group Corp. agreed to buy ARM Holdings Plc for 24.3 billion pounds ($32 billion), securing a slice of virtually every mobile computing gadget on the planet and future connected devices in the home. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
ARM Holdings CEO Rene Haas speaks during a ceremony for the launch of a collaboration between Malaysia and ARM Holdings in Kuala Lumpur on March 5, 2025.

Overview

  • 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.