Malaysia launches six locally developed chips

Economy Minister Akmal Nasrullah Mohd Nasir has launched six Malaysian-developed chips, putting their combined potential sales at an estimated RM300 million. Development of all six took place within the Malaysia Semiconductor IC Design park.

The launch comes as Malaysia draws on intellectual property from Arm and a manufacturing base spanning 50 years to accelerate chip design and build domestic capabilities.

Akmal said Malaysia’s expertise in testing, equipment and packaging provided strengths on which to build its design efforts. He cited the partnership with Arm as a way for the country to obtain access to design intellectual property.

The agreement with the British semiconductor company involves Malaysia paying US$250 million over 10 years in exchange for semiconductor licences and technical knowledge. The arrangement is intended to support Malaysian companies in designing chips of their own. Malaysia has a semiconductor export target of RM1.2 trillion by 2030.

Akmal also addressed concerns that federal investment plans could overlap with state projects, including those in Sarawak and Selangor. He said hubs should have complementary roles within a national ecosystem, with states contributing different advantages across the semiconductor value chain.