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ARM to sign $250M chip deal with Malaysia | TechCrunch

Mar 05, 2025 - techcrunch.com
Malaysia is emerging as a key player in the global chip manufacturing industry amid rising U.S.-China tensions, particularly in the semiconductor sector for AI applications. ARM Holdings, backed by SoftBank, has signed a deal with the Malaysian government to enhance the country's chip design ecosystem. As part of the agreement, Malaysia will invest $250 million over ten years to acquire ARM's chip designs and technology for local manufacturers. The partnership also includes training 10,000 engineers in Malaysia on ARM's technology. This initiative is part of Malaysia's broader strategy to become a hub for chip manufacturing, supported by a $5.3 billion investment plan to develop its semiconductor infrastructure and workforce.

Malaysia has a long history in the chip industry, contributing about 13% of global chip testing, assembly, and packing services. The country has attracted significant investments from major tech companies. Intel, for instance, has been operating in Malaysia since 1972 and plans to invest over $7 billion in new facilities. Other companies like GlobalFoundries, Neways, Google, Microsoft, and Nvidia have also announced substantial investments in Malaysia, focusing on data centers, AI projects, and cloud services. These developments underscore Malaysia's commitment to strengthening its position in the global semiconductor market.

Key takeaways:

  • Malaysia is becoming a hotspot for chip manufacturing due to tensions between the U.S. and China, with ARM Holdings signing a $250 million agreement with the Malaysian government to bolster the country's chip design ecosystem.
  • The partnership between ARM and Malaysia includes the purchase of ARM's chip designs and technology, as well as training 10,000 engineers in Malaysia.
  • Malaysia aims to become a hub for chip manufacturing within the next decade, with plans to manufacture its own GPUs and a commitment of at least $5.3 billion in financial support for its National Semiconductor Strategy.
  • Major tech companies, including Intel, GlobalFoundries, Google, Microsoft, and Nvidia, have announced significant investments in Malaysia for chip manufacturing, data centers, AI development, and cloud services.
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