By Nurunnasihah Ahmad Rashid
KUALA LUMPUR, March 5 (Bernama) — Negotiations between Malaysia and Arm Holdings Plc, which have been finalised, represent an important step in strengthening the country's semiconductor ecosystem and accelerating the development of local technology, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
According to him, the success of these negotiations was the result of teamwork involving several key ministries, including the Economy Ministry, the Malaysian Investment Development Authority (MIDA), the Finance Ministry, and several related agencies.
“This collaboration aligns with the country's semiconductor strategy, which covers the entire supply chain from integrated circuit (IC) design to wafer fabrication.
“This is the first step in developing local capabilities in IC design, advanced packaging, and machinery and equipment fabrication,” he told Bernama after the Strategic Partnership in Semiconductor Industry event, which was witnessed by Prime Minister Datuk Seri Anwar Ibrahim.
Earlier, Anwar said Malaysia would invest US$250 million over the next decade, leveraging Arm's expertise to create a new ecosystem in the artificial intelligence and semiconductor industries through strategic collaboration between the two parties.
On the selection of Arm as a strategic partner, Tengku Zafrul said the company has expertise in technology design and intellectual property (IP) rights, with 80 to 90 per cent of the global market relying on their technology in sectors such as automotive and mobile.
Comparing the Malaysia-Brazil cooperation, he said both initiatives have different approaches.
“In Brazil, we are involved in a more diplomacy-driven economic cooperation, where we (Malaysia) are helping them to develop a new sector.
“But in Malaysia, the cooperation with Arm involves adopting the company's (Arm) technology to enable local companies to access new technologies and the necessary IP licenses,” he said.
He thanked the Prime Minister, who played a key role in the negotiations.
“The Prime Minister was the chief negotiator, resolving issues that had previously been delayed … This success would not have been possible without his direct involvement.
“MITI and MIDA will ensure that Arm's technology is fully utilised by local companies to further boost Malaysia's semiconductor industry,” he added.
On Friday, Rene Haas, the chief executive officer (CEO) of Arm, a world-leading semiconductor company from the United Kingdom (UK), in an online discussion with Anwar, also attended by SoftBank Group Corp's CEO Masayoshi Son, expressed its intention to establish a base in Malaysia and sign a joint agreement.
SoftBank is a leading multinational investment holding company from Japan and owns Arm.
— BERNAMA
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