Arm Holdings Partnership Crucial for Malaysia’s Shift Into High-Value Chip Design and Semiconductor Leadership
PUTRAJAYA, Feb 23 — Malaysia’s strategic partnership with global semiconductor firm Arm Holdings must continue to ensure long-term national gains and accelerate the country’s move into higher-value semiconductor activities, Economy Minister Akmal Nasrullah Mohd Nasir said.
He stressed that the agreement represents a key Cabinet-level decision aligned with Malaysia’s long-term strategy to strengthen its semiconductor ecosystem and enhance its technological capabilities.
According to Akmal, the partnership will provide Malaysia with access to critical chip design intellectual property, allowing the country to expand beyond its traditional focus on assembly and packaging into more advanced and valuable segments of the industry.
“Malaysia is currently among the top six semiconductor players globally, but our involvement has largely been concentrated in back-end processes.
“This agreement allows us to move into chip design, which represents the highest value segment of the semiconductor industry,” he said after attending the Economic Census launch today.
Supporting Malaysia’s ‘Made in Malaysia’ chip ambitions
Akmal noted that the agreement is aligned with national plans to develop high-value industries and promote local innovation.
He said strengthening chip design capabilities would enable Malaysia to create its own technology and reduce dependence on foreign intellectual property.
The move is expected to position Malaysia as a more competitive and technologically advanced semiconductor hub in the region.
“Our long-term objective is to develop locally designed chips and increase Malaysia’s value contribution to the global semiconductor supply chain,” he said.
Developing 10,000 skilled semiconductor professionals
Another key objective of the partnership is to develop approximately 10,000 Malaysian professionals with expertise in semiconductor technology and chip design.
Akmal emphasised that talent development is critical to sustaining industry growth and ensuring Malaysia’s long-term competitiveness.
He said building a strong local talent pool would support innovation and enable Malaysia to fully benefit from technological advancement.
Investigation does not diminish long-term importance
Previously, the Suruhanjaya Pencegahan Rasuah Malaysia launched an investigation into the RM1.1 billion agreement involving the Malaysian government and the foreign firm.
Despite this, Akmal stressed that the agreement remains strategically important for Malaysia’s economic future.
He said the collaboration has the potential to transform Malaysia’s semiconductor industry and support the country’s ambition to become a leader in chip design and advanced semiconductor technologies.
The continued implementation of the agreement is expected to strengthen Malaysia’s global standing and drive future economic growth through innovation and high-value technology development.
-wilayah.com.my
