MALAYSIA has strengthened its ambition to develop a more advanced semiconductor industry by expanding access to cutting-edge chip design tools through a strategic collaboration with Arm, aimed at accelerating the country’s transition from backend manufacturing into high-value integrated circuit (IC) design.
The initiative, announced in Putrajaya, forms part of a Strategic Partnership between the Government of Malaysia and Arm, under which selected Malaysian semiconductor companies will be granted access to advanced design technologies and intellectual property to support the development of locally designed chips.
Under the latest allocation, four technology tokens, including Arm Compute Subsystems (CSS) and Arm Flexible Access, have been awarded to Great Asic Technology Sdn. Bhd., SkyeChip Bhd. and Oppstar Technology Sdn. Bhd., enabling them to utilise Arm’s global compute platforms and intellectual property portfolio.
The ministry explained that the allocation structure follows established practices in semiconductor access programmes, where multiple types of technology “tokens” can be distributed unevenly across participating firms.
In this case, two categories of tokens were issued — Arm Compute Subsystems (CSS) and Arm Flexible Access (AFA) — with a total of four tokens awarded to three companies.
Under the allocation, Great Asic Technology Sdn. Bhd. is understood to have received both a CSS and an AFA token, while SkyeChip Bhd. and Oppstar Technology Sdn. Bhd. each received one AFA token.
This brings the total to four tokens across the three firms, with one company effectively granted access to both categories of Arm technology.
Officials noted that “tokens” refer to distinct access entitlements rather than a one-to-one distribution by company, meaning a single firm may receive multiple types of access depending on its project requirements, technical readiness and role within the broader semiconductor ecosystem.
The government said the programme is intended to accelerate the development of Malaysia’s domestic semiconductor design capabilities and reduce reliance on lower-value assembly and testing activities.
Economy Minister Akmal Nasrullah Mohd Nasir said the collaboration marks a significant structural shift in the country’s industrial strategy.
“Malaysia has long been known for its chip assembly, testing and packaging activities. This strength is important, but the future of the industry must not stop there. We must move further from the back-end to the front-end, from just producing to designing, developing IP and creating our own technology,” he said in a statement released by the ministry on Monday.
The Malaysia–Arm collaboration is structured around three key pillars: building a pipeline of 10,000 integrated circuit design professionals, expanding access to Arm’s computing technologies for selected Malaysian companies, and supporting the creation of semiconductor products designed locally in Malaysia.
Officials said the initiative is aligned with major national economic blueprints, including the Thirteenth Malaysia Plan, the New Industrial Master Plan 2030 (NIMP 2030), and the National Semiconductor Strategy (NSS), which collectively prioritise growth in high-value sectors such as chip design, advanced packaging, semiconductor equipment manufacturing and wafer fabrication.
The government added that the effectiveness of the programme will be measured through tangible outcomes, including commercially viable products, increased domestic intellectual property creation, expansion of high-skilled employment opportunities, and greater participation of Malaysian engineers in advanced semiconductor design roles.
The partnership reflects Malaysia’s broader ambition to move beyond its established role in global electronics manufacturing and secure a stronger position in the upstream segments of the semiconductor value chain, particularly in design, innovation and intellectual property development. - May 11, 2026
