Prime Minister Anwar Ibrahim has signed a RM1.11 billion partnership deal with leading semiconductor design firm Arm Holdings Plc’s CEO Rene Haas at the Shangri-La Hotel in Kuala Lumpur on Wednesday 5th March 2025.
This is apparently a break from Arm’s past practices, which usually partners with global tech giants. Haas credited Malaysia’s long-standing experience in the semiconductor industry since the 1970s, with major companies like Intel and HP establishing operations here.
“Malaysia’s collaboration with Arm represents the start of the 2nd semiconductor wave. This marks a fundamental shift in our approach to semiconductors and technology that will define our future,” Anwar said in his keynote address.
“Through this comprehensive partnership with Arm, we have conceived one of the most ambitious technological plans Malaysia has ever seen to pioneer ‘made by Malaysia’ AI chips. These chips will be designed, manufactured, tested and assembled here, and sold to the rest of the world,” Anwar added.
(Image: X/Anwar Ibrahim)
Anwar said that this partnership includes 3 main features: a training program to develop 10,000 integrated circuit design engineers; exclusive access for select Malaysian companies to Arm’s advanced technology and IP; and support for locally designed semiconductor products.
Anwar also took to his X (formally Twitter) account to share that this agreement not only strengthens Malaysia's position in the semiconductor and AI sectors but also marks a new era in which Malaysia is no longer merely a chip manufacturing hub but also a leader in innovation and technology development in the region.
“More significantly, this collaboration will strengthen the nation’s semiconductor industry ecosystem by developing a more resilient and sustainable local supply chain. Small and medium enterprises (SMEs) will greatly benefit from opportunities to participate in this high-tech industry, paving the way for more semiconductor products that are not only designed in Malaysia but also marketed internationally,” he added.
(Image: X/Anwar Ibrahim)
Anwar ended his post by stating that Malaysia is laying a solid foundation to become a respected technological innovation hub in the region, with this initiative.
“God willing, with expertise, dedication, and strong support from all stakeholders, the country will continue advancing as a key player in the global semiconductor and AI arena.”
(Source: The Edge; South China Morning Post)
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