Malaysia is aiming to put its first locally designed ARM-based chips into production by 2030 under a RM1.1 billion collaboration with UK semiconductor company Arm Ltd.
Economy Minister Akmal Nasrullah Mohd Nasir recently announced that five local companies holding a total of eight technology access tokens are expected to complete their chip designs by 2028, following a three-year development cycle. Four of the companies are already actively working on their chip designs.
The programme includes four Arm Compute Subsystem (CSS) tokens and four Arm Flexible Access (AFA) tokens.
Oppstar Technology Sdn Bhd has been awarded access to the Arm Compute Subsystem platform, while drone technology company Alphaswift Industries Sdn Bhd has secured an Arm Flexible Access token for projects involving automation and enterprise servers.
Beyond chip development, the Malaysian Government is also investing in building a skilled semiconductor workforce. The initiative aims to train 10,000 individuals over four years, with a target of reaching 5,000 trainees by 2027.
So far, 1,530 participants have completed Arm On-Demand Training programmes.
The talent development effort is being carried out in collaboration with 12 universities and the Advanced Semiconductor Academy of Malaysia under the Selangor Information Technology and Digital Economy Corporation (SIDEC).
Graduates entering the semiconductor sector could reportedly earn starting salaries of between RM5,000 and RM5,100, with experienced professionals potentially earning up to RM9,000.
While developing a complete system-on-chip comparable to those produced by major companies such as Qualcomm may remain a long-term ambition, Malaysia’s focus on ARM-based chip design represents an important next step in expanding its role in the global semiconductor industry.
Malaysia already has an established presence in semiconductor packaging and testing. Moving further into chip design and related technologies could help the country strengthen its position in the rapidly growing global chip ecosystem.