March 5, 2025 /SemiMedia/ — Malaysia will pay $250 million over the next decade to acquire high-end chip design blueprints from Arm, aiming to support local manufacturers in developing homegrown graphics processing units (GPUs), Economy Minister Rafizi Ramli said.

The agreement includes seven advanced chip designs, with the government seeking to foster a domestic semiconductor ecosystem. The initiative aims to establish 10 local chip firms, each generating annual revenue between $1.5 billion and $2 billion.

Driven by surging demand for AI and data centers, global tech giants have ramped up investments in Malaysia. Since 2023, Microsoft, NVIDIA, Alphabet (Google), and ByteDance have committed billions of dollars to cloud computing and AI infrastructure in the country.

Additionally, Malaysia plans to establish Southeast Asia’s largest integrated circuit (IC) design hub, offering tax incentives, subsidies, and visa exemptions to attract global tech firms and investors. Prime Minister Anwar Ibrahim stated that the hub would host leading industry players and collaborate with global firms like Arm. Reports indicate that Arm is set to sign an agreement this week to establish a base in Malaysia.