Malaysia targets first ‘made by Malaysia’ chips using Arm Limited technology by 2030, says economy minister

Economy Minister Akmal Nasrullah Mohd Nasir speaks at a press conference after the ministry’s monthly assembly in Putrajaya on August 21, 2026. — Picture by Choo Choy May

By Soo Wern Jun

First Published: Friday, 21 Aug 2026 12:51 PM MYT

PUTRAJAYA, Aug 21 — The government is targeting 2030 for the first “Made by Malaysia” chips developed using Arm Limited technology to enter production and the semiconductor supply chain.

Economy Minister Akmal Nasrullah Mohd Nasir said four companies have so far begun designing chips using technology from British semiconductor technology company Arm Limited, with the aim of eventually bringing their products into production and the semiconductor supply chain.

He said the companies were expected to take about three years to develop their products after gaining access to the relevant Arm technology, although the timeline would vary depending on the technology and market targeted.

“We hope the initial chip designs could be completed by 2028 before the companies move on to production and commercialisation,” he told a press conference at the Economy Ministry’s monthly assembly today.

“The development will take approximately about three years for them to come up with the chip.

“We are setting the target to produce the first one by 2030,” he added.

He added that the government wanted the chips not only to be designed locally but also to be produced and used in the semiconductor supply chain, subject to the companies’ ability to secure customers for their products.

In line with the target, the government today handed offer letters to Oppstar Technology Sdn Bhd and Alphaswift Industries Sdn Bhd for access to Arm Compute Subsystem (CSS) technology and the Arm Flexible Access (AFA) programme, respectively, under the strategic cooperation between Malaysia and Arm Limited.

Akmal said eight Arm technology-access packages — comprising four Arm CSS and four Arm Flexible Access tokens — had so far been offered to five local companies.

The access is intended to help local companies accelerate integrated circuit design and research and development activities in Malaysia, including in areas such as drones and advanced microelectronics.

He said each token provided access to different technologies, with companies assessed according to their technical capabilities, identified markets, potential customers and commercial prospects.

He added that the government was also seeking to ensure that the partnership generated benefits beyond chip design, including local manufacturing and the development of highly skilled Malaysian engineers.

“We want this access to global technology to be a catalyst for more chip designs, intellectual property and high-value products to be developed in Malaysia,” Akmal said.

“This is the foundation for producing local companies and engineers capable of bringing Malaysian chip products to the global market.”

1,530 have undergone Arm training

On talent development, Akmal said 1,530 participants had so far undergone Arm On-Demand Training, out of a target of training 10,000 people over four years.

He said the training was intended to give participants early exposure to Arm technology and create a talent pipeline that could eventually support companies involved in chip design, research and production.

When asked about expected salaries, the minister said some graduates of programmes conducted jointly with SIRIM’s Semiconductor Integrated Circuit Design and Application Centre (SIDAC) in Selangor had secured starting salaries of about RM5,500, potentially rising to between RM8,000 and RM9,000 after two to three years of experience.

Elaborating, he stressed that the 10,000-person target did not mean that all participants would immediately become highly specialised chip designers, but was instead intended to create a broader pool of talent familiar with Arm systems and semiconductor technologies.

He said the government also hopes that companies receiving access to Arm technology will recruit Malaysian talent for their design, research and production activities.

To strengthen the talent pipeline, the government has reached an agreement with 12 universities, supported by the ministry, government agencies and industry players, for a more structured implementation of the Arm On-Demand Training programme.