Malaysia Signs RM1.11 BILLION Deal With UK Firm To Become Chip Powerhouse

Althea

Althea

Last updated 05 March, 2025

(Image: 123rf)

Did you know that Malaysia packages 10% of the world’s semiconductors?</p>

Leading semiconductor design firm Arm Holdings Plc (Arm) will be providing chip designs and technology to Malaysia for the next 10 years in a RM1.11 billion partnership.

This deal sees Malaysia acquiring intellectual property from the UK-based, SoftBank-owned firm, whose technology powers nearly all of the world’s smartphones, as Malaysia aims to become a creator of chip IP rather than a manufacturing hub.

Malaysia has signed the deal with Arm for semiconductor licenses and expertise to help local companies design their own chips and increase semiconductor exports to RM1.2 trillion by 2030.

Rafizi Ramli

(Image: Bloomberg)

Minister of Economy Dato' Seri Mohd Rafizi Ramli in an interview with Bloomberg Television today said:

“We have always wanted to move from the backend — which is on testing and assembly — to the frontend.”

“We don’t want factories anymore, we want IPs”.

“Within 5 years, we want a Malaysian-designed, Malaysian-made chip. The proof of the pudding is in the next 2-3 years.”

Rafizi further said that Malaysia is aiming to make its own chips and to create up to 10 chip companies with a combined annual revenue of $20 billion which could add 1% to Malaysia’s GDP.

The deal will also create 10,000 skilled workers trained by Arm.

(Source: Bloomberg; South China Morning Post)

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