Chip production in Malaysia and agreement with ARM Holdings

Due to the tense relations between China and the United States, Malaysia is gradually becoming a major center of chip production. Many large tech companies worldwide want to diversify their supply sources, and ARM Holdings is not an exception.

Agreement with ARM Holdings

The chip vendor recently announced that it has signed an agreement to develop chips in Malaysia. As part of the agreement with the Malaysian government, the country will pay 250 million dollars over 10 years to ARM for the company's technology and development.

As part of the deal, the country will get access to 7 ARM chip blueprints, and 10,000 local engineers will be trained.

As of now, there are no official comments from the company and the Malaysian government about the investment. But, many important steps are being taken to make Malaysia a manufacturing center in the next decade.

For example, last year, the government announced financial assistance for the training of 60000 engineers. In such a way, it is planned to improve infrastructure and attract customers from all over the world.

According to a TrendForce report, Malaysia has about 13 percent of the world's chip assembly and packaging services. The country has been involved in chip manufacturing for more than 50 years. For example, in 1972, Intel opened a plant in Malaysia.

Since 2023, many tech companies have announced their investments in the country on projects that were mainly related to cloud services and AI.