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Malaysia taps Arm IP to shorten chip development timelines

Six locally developed chips launched at AiSEM 2026 have estimated combined sales potential of RM300 million.

Illustration of semiconductor chips and integrated circuit designs
Photo: BERNAMA

Malaysia is using intellectual property (IP) from Arm Ltd to accelerate semiconductor design, Economy Minister Akmal Nasrullah Mohd Nasir said on Oct 16. He also launched six homegrown chips with estimated combined sales potential of RM300 million at the Selangor AI & Semiconductor Summit (AiSEM) 2026 in Kuala Lumpur.

The chips were developed at the Malaysia Semiconductor IC Design Park. Akmal said combining Malaysia’s backend manufacturing expertise with access to Arm’s IP had enabled local design parks to deliver six market-ready chip innovations in two years.

He said Malaysia was drawing on its 50-year manufacturing base, including expertise in testing, equipment and packaging, while working with global architecture partners to expand domestic IP capabilities.

Addressing concerns about overlapping federal and state investments, including projects in Sarawak and Selangor, Akmal said semiconductor hubs should work together rather than duplicate activities. Each state offered different advantages along the value chain, he said.

Akmal also said the government aims to raise the skilled-worker share to 35 per cent under the Thirteenth Malaysia Plan (13MP), compared with around 31 per cent in 2025. He linked the target to the expansion of high-growth, high-value sectors and efforts to improve workforce capabilities.

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