Malaysia to Pay Arm Holdings $250 Million for Chip Design Blueprints

Reuters | 5th March 2025

KUALA LUMPUR, March 5 (Reuters) - Malaysia will pay Arm Holdings (O9Ty.F), opens new tab $250 million over 10 years to acquire the firm's chip design plans for local manufacturers, the government said on Wednesday as it looks to produce its own chips within the next decade amid an AI boom.

The Southeast Asian nation plans to produce its own graphics processing unit chips in the next five to 10 years as demand for artificial intelligence and data centres grows.

Prime Minister Anwar Ibrahim said the agreement with Arm will allow Malaysia to design, manufacture, test and assemble AI chips to be sold globally.

Arm will also establish its first Southeast Asian office in Malaysia's capital Kuala Lumpur, with the aim of expanding outreach to other markets in the region as well as Australia and New Zealand, Anwar said when announcing the deal, without providing further details.

Arm CEO Rene Haas said the agreement was poised for success, given Malaysia's decades of experience in the semiconductor industry built around advanced packaging, assembly and manufacturing.

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