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Malaysia Partners with Arm to Boost Domestic Semiconductor Industry

The $250 million, 10-year deal aims to transition Malaysia from chip assembly to advanced chip design and 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 acquire chip design intellectual property from UK-based Arm Holdings.
  • The agreement includes access to seven high-end chip design blueprints, enabling Malaysian companies to produce advanced semiconductors.
  • The initiative is expected to create 10,000 highly skilled workers in integrated circuit design and foster the growth of 10 local chip companies with significant annual revenues.
  • Malaysia aims to achieve semiconductor exports worth 1.2 trillion ringgit ($270 billion) by 2030 as part of its broader strategy to move up the semiconductor value chain.
  • The deal supports Malaysia's plan to establish Southeast Asia's largest integrated circuit design park, offering incentives to attract global tech firms.