MIDA and ARM Limited Forge Agreement to Boost Malaysia’s Semiconductor Industry
First-Ever National Partnership with ARM Targets Semiconductor Design Capabilities, Talent Development, and Positions Malaysia As Asia’s IC Design Hub
Kuala Lumpur, 5 March 2025 – The Malaysian Investment Development Authority (MIDA) and ARM Limited today announced a landmark national partnership that promises to reshape Malaysia’s semiconductor landscape. This groundbreaking collaboration marks ARM’s first-ever country-level partnership, positioning Malaysia at the forefront of global semiconductor innovation.
In line with the objectives of the New Industrial Master Plan 2030 (NIMP 2030) and National Semiconductor Strategy (NSS) launched by the Ministry of Investment, Trade & Industry (MITI), the four-year strategic partnership will revolutionise Malaysia’s semiconductor ecosystem through three key initiatives. First, it will establish comprehensive training programmes for 10,000 IC design engineers, creating a robust talent pipeline for the industry. Second, it will provide selected Malaysian companies with privileged access to ARM’s cutting-edge technology and IP portfolio. Third, it will facilitate the development of locally designed semiconductor products, advancing the nation’s goal of producing more advanced chips in Malaysia.
ARM’s decision to select Malaysia as its first Southeast Asian partner sets clear objectives that will help elevate the country’s semiconductor sector. Minister of Investment, Trade, and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Aziz, outlined the positive impact of this collaboration, “MITI is happy to have played a role in facilitating this partnership, in collaboration with the Ministry of Economy and Ministry of Finance. This and all other high-tech investments including RM55.8 billion of approved E&E investments for 2024, are a clear testimonial of our YAB Prime Minister’s leadership in helping us close deals with global names who appreciate Malaysia’s value proposition as an investment destination. All these investments will equip Malaysia with the target semiconductor design capabilities that our economy needs to generate higher value exports and move our industry players up the global supply chain. The MIDA-ARM agreement, in particular, will train 10,000 Malaysian engineers in IC design and pave the way for our country to produce Malaysian-made chips that meet global standards, while creating more opportunities for our SMEs and higher-value jobs for our people.”
Building on this vision, MIDA Chief Executive Officer, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, emphasised the partnership’s transformative potential, “This agreement marks a pivotal shift in Malaysia’s semiconductor journey. We’re creating pathways for local companies to evolve from backend manufacturing to high-value chip design. This partnership establishes Malaysia as a self-sustaining innovation hub, attracting global semiconductor leaders while developing our local talent pool. The timing perfectly aligns with increased foreign investor interest in Malaysian design activities.”
This collaboration comes on the heels of Malaysia’s remarkable investment performance in 2024, which saw RM378.5 billion in approved investments, the highest in the nation’s history—a 14.9% year-on-year growth.
The Electrical and Electronics (E&E) industry, a pillar of Malaysia’s industrial strength, led the surge, attracting RM55.8 billion in investments and accounting for 46.3% of the manufacturing sector’s total. This underscores Malaysia’s pivotal role in the global technology supply chain, reinforcing the nation’s attractiveness as a hub for high-value innovation, semiconductor design, and advanced manufacturing.
As Malaysia solidifies its position in the global semiconductor value chain, the MIDA-ARM partnership is poised to catalyse further growth, attract top-tier investments, and foster homegrown innovation, ensuring Malaysia’s continued leadership in the semiconductor industry of the future.
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About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube.
Media Contacts:
MIDA
Mr. Mohd Mazlan bin Mokhtar
Director of Electrical and Electronics Division, MIDA
T: +603-2267 6655
E: [email protected]
