ARM Inks $250M Chip Deal with Malaysia

# Softbank # malaysia

Malaysia is quickly becoming a go-to place for chip manufacturing, thanks to the ongoing tensions between the U.S. and China, particularly over AI-related semiconductors. It's no surprise that tech companies worldwide are looking to spread out their chip sources, and ARM Holdings is eager to jump on this bandwagon. On Wednesday, the SoftBank-backed chipmaker announced a new deal with the Malaysian government aimed at beefing up the country's chip design scene. According to Reuters, Malaysia is set to shell out $250 million over the next decade to ARM for its chip designs and tech, which local manufacturers will use. This includes buying IP and seven of ARM's chip design blueprints, as Economy Minister Rafizi Ramli told Reuters. ARM also plans to train 10,000 engineers in Malaysia on its technology as part of this partnership. However, ARM didn't want to spill the beans on the $250 million investment from the Malaysian government, and a Malaysian government rep didn't get back to us before we hit publish. This move is just the latest in Malaysia's push to become a major player in chip manufacturing over the next ten years. Earlier this year, they announced plans to start making their own GPUs to keep up with the demand for AI and data centers. Last May, the Malaysian government said it would set aside at least $5.3 billion and train 60,000 engineers for its National Semiconductor Strategy (NSS). The goal is to upgrade their current setup, build a top-notch chip supply chain, and draw in big global clients. Malaysia's been in the chip game for over 50 years now, and they're currently responsible for about 13% of the world's chip testing, assembly, and packing, according to a TrendForce report that cited the Malaysian Investment Development Authority (MIDA). Back in 1972, Intel set up its first overseas production facility in Penang, Malaysia, with a $16 million investment in an assembly site. Fast forward to December 2021, and Intel announced they'd be dropping more than $7 billion to build a chip assembly and testing factory in the country. They're also working on their biggest 3D chip packaging facility in Malaysia. GlobalFoundries, another U.S. chip company, opened a new hub in Penang in 2023, and Neways, a Dutch chip equipment maker, is planning to build a new plant there. Plus, since 2023, big names like Google, Microsoft, and Nvidia have announced they're pouring billions into Malaysia for data centers, AI projects, and cloud services.

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