PUTRAJAYA: Three local technology companies have been selected to lead Malaysia's push from traditional microchip manufacturing to integrated circuit (IC) design and innovation.
The companies, Great Asic Technology Sdn Bhd, SkyeChip Bhd and Oppstar Technology Sdn Bhd, were granted exclusive access to computing platforms and intellectual property (IP) from global semiconductor giant Arm Limited.
A total of four tokens, including Arm Compute Subsystems (CSS) and Arm Flexible Access (AFA), were handed to the firms on Monday (May 11) to fast-track the development of locally designed semiconductor products.
Economy Minister Akmal Nasrullah Mohd Nasir said the handover was not just an approval document, but a clear signal that the local industry is entering a new, high-value phase.
"We want to move from our existing strengths in chip assembly, testing, and packaging to more strategic capabilities, such as IC design, IP development, research and development (R&D), and the production of high-value technology products," he said at the handover ceremony.
Akmal Nasrullah issued a direct challenge to the three companies, stressing that the government has opened the door but the industry must now step up with courage and discipline.
"To the companies receiving the offer letters today, this is not merely an approval, it is a call to deliver.
"The real test lies in execution: in products brought to market, intellectual property created in Malaysia, high-skilled jobs generated for Malaysians, and stronger linkages with our universities, vendors, and research ecosystem," he said.
Akmal Nasrullah also cautioned that while foreign direct investments remain crucial, Malaysia's future cannot rely solely on being a production base for others.
"Malaysia's ambition is clear. We do not want to be merely a location in the global semiconductor supply chain. We want to be a nation that designs, develops, and owns technology.
"Today's handover is a step towards that future, where Malaysian companies and Malaysian engineers move from the edge of the value chain to the centre of global innovation," he said.
The push for local IC design comes as global semiconductor demand surges, driven by artificial intelligence (AI), electric vehicles, data centres and industrial automation.
Akmal Nasrullah also noted that Malaysia's electrical and electronics (E&E) sector remains the backbone of the nation's exports, hitting a record high of RM711.61bil in 2025, representing 44.3% of total exports. Electronic IC exports alone jumped 24.3% to RM389.15bil.
The Malaysia-Arm collaboration is a key pillar of the National Semiconductor Strategy (NSS) and the upcoming 13th Malaysia Plan.
Under the NSS, the government aims to cultivate 10 local semiconductor companies with revenues between RM1bil and RM4.7bil, while supporting at least 100 other companies with the potential to generate RM1bil in annual revenue.
The partnership also aims to train 10,000 highly skilled IC design talents, with 1,362 trainees already undergoing the Arm On-Demand Training programme.
"This target is not just a number. It is a strategy to build local companies that are larger, more competitive, and capable of standing on the global stage.
"Ultimately, we want to see 'Made by Malaysia' products in the global market," Akmal Nasrullah said.
