Malaysia to invest US$250mil over next decade via strategic collaboration with Arm Holdings


— Reuters

KUALA LUMPUR: Malaysia will invest US$250 million (US$1= RM4.44) over the next decade, leveraging on Arm Holdings Plc's expertise, to create a new ecosystem in the artificial intelligence (AI) and semiconductor industry through a strategic collaboration with the United Kingdom-based company. 

Prime Minister Datuk Seri Anwar Ibrahim is expected to launch the strategic collaboration later today.

This move will kick off the journey towards the first Malaysia-based chip while providing a platform for local players to gain access to the semiconductor and software design firm’s intellectual property (IP) network, as well as transfer of technology and know-how.

According to a Bloomberg news report, Malaysia is aiming to create as many as 10 chip companies with total annual revenue of US$20 billion.

The report said Malaysia is already a key hub for chip testing and packaging, but the country has yet to make a meaningful foray into chip design. 

Arm Holdings has to date issued 6,800 patents while 2,700 applications are still pending, and more than 300 billion Arm-based chips have been sold worldwide.

Confirming the matter, the Prime Minister’s senior press secretary Tunku Nashrul Abaidah said that through the collaboration, Malaysia will make history in the global technology industry and witness a transformation in its AI and semiconductor landscape.

Tunku Nashrul, in the Prime Minister’s Office (PMO) daily briefing streamed live on Anwar’s official Facebook page as well as PMO Malaysia’s Facebook page, said Malaysia will be the first country in this region where the company will set up its office.

"The Prime Minister views this collaboration as a strategic step to strengthen the country's technology ecosystem, positioning Malaysia as a key player in the global technology arena.

"With this collaboration in place, Malaysia moves ahead of other countries by becoming the company’s first  technology ecosystem partner, making it a key hub in ASEAN,” he said.

Tunku Nashrul said this MADANI Government initiative is implemented by the Investment, Trade and Industry Ministry, the Finance Ministry and the Economy Ministry.

He said this partnership will enable Malaysian companies to leverage advanced technology and expertise in semiconductors, as well as train the local skilled workers.

"This will accelerate the development of a high-skilled workforce and strengthen the competitiveness of the nation’s technology industry,” he said.

He added that the launch and signing of this strategic collaboration is a testament to global investors’ confidence in the MADANI Government’s policies and continued commitment in having high-value collaborations with Malaysia. - Bernama

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