Chip design funding remains a hurdle despite subsidised ARM access
Johari Abdul Ghani said access valued at RM30 million to RM40 million could save Malaysian firms two years in chip development.
Subsidies for access to ARM Holdings plc's chip designs have not removed the capital barrier facing Malaysian semiconductor designers, Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani said in Parliament on Oct 21.
Johari said a simpler chip could cost US$50 million (RM212 million) to design, while complex architectures could require US$300 million, with completion taking two to two-and-a-half years. Funding requirements remained a constraint for local companies, he told the Dewan Rakyat.
He valued the subsidised ARM access at RM30 million to RM40 million, saying it reduced costs and saved two years of development time. The Economy Ministry introduced the initiative in 2025. Allocations have reached four CSS tokens out of seven, alongside four AFA tokens out of 25.
Recipients of Compute Subsystem tokens include automotive chip designer Xenith Technology and mini server chip designer Oppstar Technology. SkyeChip and GreatAsic Technology received tokens for data centre applications, Johari said.
Separately, Johari said the New Incentive Framework linked tax holidays to outcomes such as more complex manufacturing, domestic supply-chain connections and the creation of high-income jobs. Reducing reliance on low-skilled foreign labour was also a focus.
Training through the National Semiconductor Strategy had covered 22,849 high-skilled workers by the third quarter of 2026, he said, against a goal of training 60,000 engineers by 2030. Miti is gathering subsector job-placement data with other ministries, educational institutions and industry participants to evaluate talent retention.
