Malaysia rolled out six chips built by local companies and pegged their total revenue potential at roughly 300 million ringgit a year, or about $74 million. The move is part of a broader push to move beyond the country's traditional role in packaging and testing for global players and deeper into higher-value activities.
Those chips were developed at a design hub set up in Selangor in 2024. The aim now is to translate that design capability into products that can ship in volume.
Economy Minister Akmal Nasrullah Mohd Nasir said the new chips target a spread of uses, from artificial intelligence to cars, satellites and drones. One example is SkyeChip Bhd.'s processor meant for AI-enabled cameras, robots and factory equipment.
According to Akmal, the tie-up with Arm Holdings Plc gives Malaysia's companies the ability to use cutting-edge design tools and Arm's intellectual property. He now aims to convert that access into products that are commercially viable and ready for large-scale sales.
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Malaysia remains a key node in the chip supply chain, hosting packaging facilities for Intel Corp., GlobalFoundries Inc. and Infineon Technologies AG. It has also drawn Chinese chipmakers seeking easier routes to foreign capital and technology.
Demand for electronics tied to AI has helped buffer the trade-reliant economy from global shocks. According to advance estimates released Friday, GDP grew 5.3% year over year in the three months through September. The bottom line: Malaysia is angling for more value per chip by building on design access and local talent, and the winners will be the firms that turn that into scale orders and recurring sales.
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