The Malaysian Investment Development Authority (MIDA) and ARM Limited announced Wednesday a national partnership to boost Malaysia’s semiconductor industry.
MIDA said in a statement that this collaboration marks ARM’s first-ever country-level partnership, positioning Malaysia at the forefront of global semiconductor innovation.
In line with the objectives of the New Industrial Master Plan 2030 (NIMP 2030) and National Semiconductor Strategy (NSS) launched by the Ministry of Investment, Trade & Industry (MITI), the four-year strategic partnership will revolutionize Malaysia’s semiconductor ecosystem through three key initiatives.
First, it will establish comprehensive training programs for 10,000 integrated circuit (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.
ARM’s decision to select Malaysia as its first Southeast Asian partner sets clear objectives that will help elevate the country’s semiconductor sector, said the statement.
Minister of Investment, Trade, and Industry (MITI) Tengku Zafrul Aziz outlined the positive impact of this collaboration.
“MITI is happy to have played a role in facilitating this partnership, in collaboration with the Ministry of Economy and Ministry of Finance,
“This and all other high-tech investments including MYR 55.8 billion ($12.6 billion) of approved electrical and electronics (E&E) investments for 2024, are a clear testimonial of our Prime Minister’s leadership in helping us close deals with global names who appreciate Malaysia’s value proposition as an investment destination,” he said.
According to him, all these investments will equip Malaysia with the target semiconductor design capabilities that the economy needs to generate higher value exports and move its industry players up the global supply chain.
“The MIDA-ARM agreement, in particular, 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,” he added.
Building on this vision, MIDA Chief Executive Officer Sikh Shamsul Ibrahim Sikh Abdul Majid emphasized the partnership’s transformative potential.
“This agreement marks a pivotal shift in Malaysia’s semiconductor journey. We’re creating pathways for local companies to evolve from backend manufacturing to high-value chip design，
“This partnership establishes Malaysia as a self-sustaining innovation hub, attracting global semiconductor leaders while developing our local talent pool. The timing perfectly aligns with increased foreign investor interest in Malaysian design activities,” he added.
According to the statement, this collaboration comes on the heels of Malaysia’s remarkable investment performance in 2024, which saw MYR 378.5 billion ($85.45 billion) in approved investments, the highest in the nation’s history — a 14.9 percent year-on-year growth.
The E&E industry, a pillar of Malaysia’s industrial strength, led the surge, attracting MYR 55.8 billion ($12.6 billion) in investments and accounting for 46.3 percent 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.
As Malaysia solidifies its position in the global semiconductor value chain, the MIDA-ARM partnership is poised to catalyze further growth, attract top-tier investments, and foster homegrown innovation, ensuring Malaysia’s continued leadership in the semiconductor industry of the future, said the statement.
Malaysia’s digital investments hit record high at $37B in 2024