Malaysia is set to invest US$250 million with Arm Holdings to create an AI and semiconductor ecosystem, aiming to launch its first chip industry. This collaboration is expected to generate annual revenues of US$20 billion from local semiconductor firms and enhance workforce skills in Malaysia.
Malaysia plans to invest US$250 million over the next decade in collaboration with Arm Holdings Plc to establish a new ecosystem within the artificial intelligence (AI) and semiconductor sectors. Prime Minister Datuk Seri Anwar Ibrahim is set to announce this strategic initiative today, marking the start of developments that aim to create Malaysia’s first domestic chip industry.
This initiative seeks to facilitate local firms in accessing Arm Holdings’ vast network of intellectual property (IP) while fostering technology transfer and skill development. Reports indicate that Malaysia aims to establish up to ten semiconductor companies, potentially generating an annual revenue of US$20 billion. Although Malaysia is already recognized as a central hub for chip testing and packaging, it is yet to significantly enter chip design.
Arm Holdings, which holds 6,800 patents and has over 2,700 pending applications, has distributed more than 300 billion chips globally. Tunku Nashrul Abaidah, the Prime Minister’s senior press secretary, stated that this partnership will revolutionize Malaysia’s position in the global technology arena, marking it as the first ASEAN nation to host an Arm office.
Nashrul emphasized the importance of this collaboration in reinforcing Malaysia’s technology ecosystem and its ambition to become a leader in technological advancements within the region. He noted that this initiative involves collaboration among the Investment, Trade and Industry Ministry, Finance Ministry, and the Economy Ministry, aiming to increase local companies’ competitiveness.
The partnership will empower Malaysian enterprises to utilize advanced semiconductor technologies, enhance workforce skills, and build a robust technological base. The signing of this strategic collaboration also signals strong global investor confidence in the policies of the MADANI Government, demonstrating a commitment to high-value partnerships moving forward.
Malaysia’s investment of US$250 million in collaboration with Arm Holdings marks a significant step towards establishing a domestically rooted semiconductor industry. This partnership aims to boost local companies and workforce skills in technology, positioning Malaysia as a pivotal player in the global tech ecosystem. The initiative highlights a strategic approach to enhance the country’s presence in the AI and semiconductor fields, reflecting robust confidence among international investors in Malaysia’s development strategies.
Original Source: www.bernama.com
