Malaysia seeks to become chip powerhouse with US$250 million investment in UK’s Arm
The country wants to scale up the tech value chain beyond manufacturing to acquire advanced semiconductor intellectual property
The global semiconductor sector, which is projected to be worth US$1 trillion by 2030, is being shaped by the tech rivalry between the US and China, as the two powers seek dominance in advanced chips at the core of everything from smartphones to supercomputers.
Malaysian Prime Minister Anwar Ibrahim signed a deal on the partnership with Arm CEO Rene Haas in Shangri-La Hotel in Kuala Lumpur on Wednesday, in a break from the company’s past practices, which usually partners with global tech giants.
Hailing the partnership, Anwar said: “Beyond technology transfer, Arm is also establishing its first Asean office here, aiming to expand its presence across Asean, Australia, and New Zealand. This demonstrates the trust and confidence Arm has in Malaysia as a strategic semiconductor hub.”
Haas attributed Arm’s decision to partner Malaysia to its decades of experience in the semiconductor industry dating back to the 1970s, with companies like Intel and HP setting up operations in the country.
“This has created a rich ecosystem in semiconductor design, assembly, and manufacturing. By combining this expertise with Arm’s deep knowledge of building computing ecosystems, we believe this partnership is poised not just for success, but for transformation. We are excited and honoured to be part of it,” Haas said.