Malaysia Selects Three Local Companies To Lead National Chip Design Ambition
PUTRAJAYA: Malaysia has intensified efforts to strengthen its high-value semiconductor industry after selecting three local firms to spearhead the country’s ambitious “Made-By-Malaysia” chip design initiative aimed at expanding national capabilities in integrated circuit (IC) development.
The administration of Prime Minister Anwar Ibrahim officially handed offers today to Great Asic Technology, SkyeChip and Oppstar Technology as the first companies selected to participate in the strategic programme.
The token handover ceremony held in Putrajaya forms part of a broader collaboration between the Malaysian government and Arm Holdings, one of the world’s leading semiconductor technology companies based in the United Kingdom.
Under the partnership, the selected Malaysian firms will gain access to Arm’s computing technologies and intellectual property portfolio to accelerate the development of semiconductor products designed in Malaysia.
Economy Minister Akmal Nasrullah Mohd Nasir said the initiative reflects the government’s determination to elevate Malaysia’s role within the global semiconductor ecosystem.
According to him, Malaysia has long been recognised internationally for its strengths in chip assembly, testing and packaging operations, but the country must now move further into higher-value activities such as chip design and technology development.
“Malaysia has strong capabilities in semiconductor assembly and testing, but the industry cannot continue depending solely on back-end operations.
“We must move forward into chip design, intellectual property development and the creation of technologies originating from Malaysia,” he said during the ceremony.
As part of the initiative, four technology tokens including access to Arm Compute Subsystems and Arm Flexible Access were handed to the three companies.
The access allows Malaysian firms to utilise Arm’s semiconductor design technologies and computing platforms to build more competitive chip products for global markets.
According to Akmal Nasrullah Mohd Nasir, the strategic partnership is centred around three main objectives.
The programme aims to train 10,000 IC design professionals, expand local industry access to Arm technologies and accelerate the creation of semiconductor products fully designed in Malaysia.
He said the selection of the first three companies marks only the initial phase of the programme, with more Malaysian firms expected to participate in the future.
Several additional companies are currently undergoing technical evaluations before being considered for inclusion.
“The most important evaluation factor is the technical capability of the companies themselves.
“There are several companies currently under assessment and the matter will continue through the existing governance framework,” he told reporters after the event.
Malaysia currently plays a major role in the global semiconductor supply chain, although much of its contribution remains concentrated in assembly and testing activities.
The government hopes to transform the country into a leading semiconductor technology and chip design hub within Southeast Asia.
The move comes amid rapidly growing global demand for advanced semiconductors driven by artificial intelligence, automation and digital transformation technologies.
Malaysia’s electrical and electronics (E&E) sector remains the country’s largest export contributor, recording RM711.61 billion in exports last year, accounting for 44.3 per cent of total national exports.
Exports of electronic integrated circuits also climbed 24.3 per cent to RM389.15 billion during the same period due to stronger demand for high-tech semiconductor products.
Through the National Semiconductor Strategy, the government aims to develop at least 10 local semiconductor companies capable of generating annual revenues ranging between RM1 billion and RM4.7 billion.
The initiative is seen as a critical step in ensuring Malaysia evolves beyond a manufacturing base into a recognised global player in semiconductor innovation and technology development.
-wilayah.com.my
