MIDA and Arm Ltd Forge Agreement to Boost Malaysia’s Semiconductor Industry

KUALA LUMPUR, March 5 (Bernama) -- Arm Ltd's decision to select Malaysia as its first Southeast Asian partner sets clear objectives that will help elevate the country's semiconductor sector.

Malaysian Investment Development Authority (MIDA) said in a statement that the first-ever country-level partnership will position Malaysia at the forefront of the global semiconductor innovation.

In line with the objectives of the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS) launched by the Ministry of Investment, Trade and Industry (MITI), the four-year strategic partnership will revolutionise Malaysia's semiconductor ecosystem through three key initiatives.

“First, it will establish comprehensive training programmes for 10,000 IC design engineers, creating a robust talent pipeline for the industry.

“Second, it will provide selected Malaysian companies with privileged access to Arm's cutting-edge technology and IP portfolio.

“Third, it will facilitate the development of locally designed semiconductor products, advancing the nation's goal of producing more advanced chips in Malaysia,” it said.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this and all other high-tech investments including RM55.8 billion of approved electrical and electronics (E&E) investments for 2024, are a clear testimonial of our Prime Minister’s leadership in helping to close deals with global names who appreciate Malaysia’s value proposition as an investment destination.

“All these investments will equip Malaysia with the targeted semiconductor design capabilities that our economy needs to generate higher value exports and move our industry players up the global supply chain.

“The MIDA-Arm agreement will pave the way for our country to produce Malaysian-made chips that meet global standards, while creating more opportunities for our SMEs and higher-value jobs for our people,” he said.

Meanwhile MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said: “This partnership establishes Malaysia as a self-sustaining innovation hub, attracting global semiconductor leaders while developing our local talent pool.

“We're creating pathways for local companies to evolve from backend manufacturing to high-value chip design.The timing perfectly aligns with increased foreign investor interest in Malaysian design activities.” 

This collaboration comes on the heels of Malaysia’s remarkable investment performance in 2024, which saw RM378.5 billion in approved investments, the highest in the nation’s history, a 14.9 per cent year-on-year growth.

The E&E industry, a pillar of Malaysia’s industrial strength, led the surge, attracting RM55.8 billion in investments and accounting for 46.3 per cent of the manufacturing sector’s total.

This underscores Malaysia’s pivotal role in the global technology supply chain, reinforcing the nation’s attractiveness as a hub for high-value innovation, semiconductor design and advanced manufacturing.

-- BERNAMA