PUTRAJAYA: Malaysia’s collaboration with British semiconductor and software design company Arm Ltd is moving into its implementation phase, with eight technology access agreements awarded to five local companies.
The government is targeting the production of the first locally developed chip under the programme by 2030, despite an ongoing Malaysian Anti-Corruption Commission (MACC) investigation into the RM1.1 billion agreement.
The latest development came with the award of two additional technology accesses to Oppstar Technology Sdn Bhd and Alphaswift Industries Sdn Bhd.
Oppstar received access to Arm’s Compute Subsystem (CSS), while Alphaswift received access under the Arm Flexible Access (AFA) programme.
Economy Minister Akmal Nasrullah Mohd Nasir said the latest awards brought the total number of Arm technology accesses issued under the collaboration to eight, comprising four CSS and four AFA accesses, involving five local companies.
“To date, eight Arm technology accesses, comprising four Arm CSS and four Arm Flexible Access tokens, have been offered to five local companies,“ he said at the Economy Ministry’s monthly assembly here today.
The latest awards came as the government presses ahead with implementing its strategic collaboration with Arm, despite the MACC investigation.
Asked for an update on the investigation, Akmal Nasrullah said the Economy Ministry had not received any further information and that it remained focused on implementing the collaboration.
“Our focus at the Economy Ministry is on implementation. Our commitment has not shifted, and we are focused on ensuring this collaboration delivers the best possible returns to the country. As for the rest, we have not received anything further,“ he told reporters.
The minister’s remarks followed earlier public statements by MACC officials saying investigations into the agreement were ongoing.
Akmal Nasrullah did not elaborate further on the status of the investigation or address whether it had affected any payments or other aspects of the agreement.
The latest technology awards mark the next stage of implementation under the collaboration, with companies receiving access to Arm’s technology expected to develop their own chip designs and intellectual property (IP).
“The next phase is actually for them to really produce the design and the IP for that particular chip,“ Akmal Nasrullah said.
Four companies have entered the design stage and are working with the relevant IP.
“At the moment, we have got four companies to start the design stage and looking at the IP,“ Akmal Nasrullah said.
According to him, developing a chip could take about three years from the time companies receive access to the relevant IP.
The government is therefore targeting around 2028 for the initial design stage to be completed before companies progress to manufacturing and commercialisation.
Malaysia is targeting the production of the first locally developed chip under the collaboration by 2030.
Akmal Nasrullah said the technologies accessed by the companies differed according to their respective capabilities and commercial focus, with potential applications including automation and servers.
The government is seeking to ensure that the benefits extend beyond the development of individual chip designs, including through the creation of Malaysian-owned IP, high-skilled engineering jobs and, where possible, semiconductor manufacturing activities in Malaysia.
Akmal Nasrullah said the commercial potential would vary depending on the technology involved, market opportunities and customers identified by each company. He said several other companies are currently being evaluated for future access.
The government remains open to additional companies joining the programme, particularly through the AFA programme, which allows companies to gain exposure to Arm technology even if they are not yet ready to develop a chip in the near term.
Alongside the technology access programme, the government is continuing to implement the collaboration’s talent component.
Akmal Nasrullah said 1,530 participants have undergone the Arm On-Demand Training Programme, against a target of developing 10,000 talents over four years.
He said the government wanted to ensure the programme translated into real skills, industry exposure, and employment opportunities rather than simply meeting a numerical target.
The ministry is targeting at least 5,000 participants by the end of 2027 to maintain momentum towards the overall 10,000-person target.
“We need to move from chasing talent shortages to building a structured talent pipeline. Talent must be developed before industry demand becomes critical,“ Akmal Nasrullah said.
The government has secured the participation of 12 universities, alongside relevant ministries, agencies and industry players, to implement the training programme more systematically.
The plan is to integrate Arm training into relevant academic programmes, industrial training and final-year projects, rather than allowing the programme to operate separately from the broader education and semiconductor ecosystem.
Akmal Nasrullah said the government also wanted to connect individuals who had undergone Arm training with companies that received technology access, including through internship opportunities.
This is intended to create a more direct pipeline from training to industry exposure and eventually employment in higher-skilled semiconductor roles.
The objective is to help Malaysia move beyond its traditional strengths in semiconductor assembly, packaging and testing towards higher-value activities, including chip design, IP development and advanced technology research.
The Arm collaboration supports this push and aligns with the country’s semiconductor ambitions under the National Semiconductor Strategy, the New Industrial Master Plan 2030 and the 13th Malaysia Plan.
