Malaysia to pay Arm Holdings $250 million for chip design blueprints

By Daniyal Azar

Kuala Lumpur (Reuters) -Malaysia will pay more than $ 250 million for local producers of Science Chips, Firm’s chips designed on Wednesday, as she sees its own chips in the next decade.

The people of Southeast Asia plans to produce the chips of its own graphics processing in the next five to 10 years, as the demand for artificial intelligence and data centers is growing.

PM FREE Ibrahim noted that the agreement with the arms will allow Malaysian to develop, produce, test, and collect AI chips, which are sold worldwide.

His first Southeast Asian Office of the Malaysian capital, Kuala Lumpur, will also create its first Southeast Asia Office for the region, as well as the spread of other Markets in Australia and other Zealand.

Arm Executive Director Rene Haas said that the agreement was prepared to succeed, taking into account the decades of Malaysia, built on advanced packaging, assemblies and production.

Minister of Economy Rafizi Ramli said that the government will pay an arm for its intellectual property, including seven of its high-class chip design projects.

The deal will also include training of 10,000 engineers in Malaysia, Rafiz told the media before the official statement of the transaction.

Malaysia hopes that the deal will allow local producers to scale, creating 10 local chip companies, $ 1.5 to $ 2 billion annually.

“We want to build a complete supply network in advanced industries, such as AI data servers, autonomous vehicles, items, robots and others,” said Rafiz. “We will nominate local players as the first way to supply chain.”

The Ministry of Economy and the arm will each have a number of criteria for the selection of local companies, taking into account the value of the involved intellectual property and successful production, said Rafiz.

The government will reveal local companies with opportunities and expertise to start production quickly.

Technology Technology Giants, including Microsoft, NVIDIA, since 2023, have announced billions of dollars in Malaysia, mainly cloud services and data centers, increasing infrastructure boom.

In April last year, Malaysia stated that it is planned to build the largest integrated design park of Southeast Asia, including visa fees to attract basic technology companies and investors.