Malaysia has signed a $250 million agreement with British semiconductor firm Arm Holdings to acquire chip design plans for local manufacturers, as the country looks to establish itself as a player in the booming artificial intelligence (AI) chip sector, Reuters reported.  

The deal, which will be paid over a decade, grants Malaysia access to Arm’s intellectual property, including seven of its high-end chip design blueprints. The government aims to develop its own graphics processing unit chips within the next five to ten years to meet the rising global demand for AI and data center technologies.  

Prime Minister Anwar Ibrahim said the agreement will allow Malaysia to design, manufacture, test, and assemble AI chips for global markets. As part of the deal, Arm will also open its first Southeast Asian office in Kuala Lumpur to expand its presence in the region, including Australia and New Zealand.  

Arm CEO Rene Haas expressed confidence in the initiative, citing Malaysia’s decades-long expertise in semiconductor packaging, assembly, and manufacturing.  

The agreement is also set to strengthen Malaysia’s semiconductor workforce, with Economy Minister Rafizi Ramli announcing that 10,000 engineers will be trained under the initiative. The government hopes to scale up domestic chip production by developing at least ten local firms with annual revenues of $1.5 to $2 billion each.  

“We are looking to build a complete supply chain in advanced industries such as AI data servers, autonomous vehicles, Internet of Things, and robotics,” Rafizi said.  

The agreement follows a wave of digital investments in Malaysia from global tech giants like Microsoft, Nvidia, Google, and ByteDance, reflecting the country’s growing role in the AI-driven infrastructure boom.  

Need Help?

If you have questions or concerns about any global guidelines, regulations and laws, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight, and ensure you’re informed and compliant.