Landmark agreement aims to position Malaysia as a leader in semiconductor innovation and talent development.
KUALA LUMPUR, Malaysia — The Malaysian Investment Development Authority (MIDA) and ARM Limited have formalised a groundbreaking partnership to elevate Malaysia’s semiconductor industry. Announced on 5 March 2025, this collaboration marks ARM’s inaugural country-level alliance, underscoring Malaysia’s strategic importance in global semiconductor innovation.
Central to this four-year strategic partnership is a $250 million investment by Malaysia to acquire ARM’s high-end chip design blueprints over the next decade. This initiative aligns with the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS), both spearheaded by the Ministry of Investment, Trade & Industry (MITI).
The agreement is structured around three key initiatives that will enhance Malaysia’s role in the global semiconductor supply chain: Talent Development, Technological Access, and Product Development. This initiative would establish training programmes to nurture 10,000 integrated circuit (IC) design engineers. By equipping the workforce with cutting-edge skills, Malaysia aims to strengthen its domestic expertise and create a sustainable pipeline of highly skilled professionals in the semiconductor industry.
In addition to talent development, the partnership will grant selected Malaysian companies access to ARM’s advanced technology and intellectual property (IP) portfolio. This privilege will enable local firms to integrate world-class semiconductor design capabilities into their operations, fostering greater innovation and competitiveness within Malaysia’s tech sector.
A further crucial element of the collaboration is the development of locally designed semiconductor products. By leveraging ARM’s technological resources, Malaysia intends to accelerate its ambitions of producing high-value semiconductor components domestically. This move is expected to drive the nation’s progression from traditional manufacturing to advanced chip design, enhancing its position in the global value chain.
MITI Minister Tengku Datuk Seri Utama Zafrul Aziz highlighted the significance of this collaboration, stating, “The MIDA-ARM agreement will train 10,000 Malaysian engineers in IC design and 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.”
MIDA Chief Executive Officer, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, also emphasised the transformative potential of the agreement, noting that the partnership would establish Malaysia as a self-sustaining innovation hub. He added that the deal would attract global semiconductor leaders while simultaneously nurturing the country’s local talent pool.
This collaboration follows Malaysia’s record-breaking investment performance in 2024, which saw RM378.5 billion in approved investments—a 14.9% year-on-year growth. The Electrical and Electronics (E&E) industry led this surge, attracting RM55.8 billion and accounting for 46.3% of the manufacturing sector’s total investments.
The MIDA-ARM partnership is poised to catalyse further growth, attract top-tier investments, and foster homegrown innovation, solidifying Malaysia’s leadership in the semiconductor industry.
