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ARM to sign $250M chip deal with Malaysia

Posted on March 5, 2025

Malaysia has become a hotspot of chip manufacturing due to the increase in tensions between the United States and China, especially around the development of semiconductor development for AI applications. According to the forecast, tech firms around the world want to diversify their chips, and the holding of the arms is now hoping to take the most out of this opportunity.

Softbank -backed chip maker Said On Wednesday, it signed an agreement with the Malaysian government to strengthen the country’s chip design environmental system.

As part of the contract, Reuters reported that Malaysia would pay the arm million 250 million For local manufacturers to buy its chip design and technology for more than 10 years. Specifically, the country will buy IP, including seven of the ARM’s chip design blueprint, Reuters quoted Minister of Economy Rafizi Rameli.

The ARM said that in this partnership, the company will also receive 10,000 engineers in Malaysia for their technology training.

Arm refuses to comment on the Malaysian government’s $ 250 investment. A Malaysian government representative did not respond to a request to comment before the publication.

The move is the latest of Malaysia’s ongoing efforts to become the center of chip manufacturing within the next decade. Earlier this year, Malaysia said Planned to prepare AI and its own GPUS to meet the demand for data centers.

Malaysian government Was told last May That will be trained at least $ 5.3 billion and trained 60,000 engineers for their national semiconductor strategy (NSS), under which the country will seek to increase its current infrastructure, develop an advanced chip supply chain and attract high global clinics.

Malaysia has been involved in the chip industry for more than 50 years, and currently provides about 13 % of global chip testing, assembly and packing services, According to a report of the Trend Force It cited the Malaysian Investment Development Authority (MIDA).

In 1972, Intel was established Malaysia’s city of Penang’s first production of its first output outside the United StatesInvesting 16 million in the assembly site. In December 2021, the US Chip Company said it would invest more than $ 7 billion to set up a chip assembly and testing factory in the country, and that is also Building Its largest 3D chip packaging facility in Malaysia. US Chip Company, Global Foundrez also opened A new hub facility in the city of Penang, Malaysia in 2023And news, a Dutch chip equipment maker, Intended to create a new plant in Malaysia.

In addition, multiple tech companies, including GoogleFor, for, for,. Microsoft And nvidia Billions of dollars have been announced in Malaysia since 2023, mainly for data centers, AI development projects and cloud services.

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