Malaysia is set to invest US$250 million over 10 years to acquire intellectual property from UK semiconductor design firm Arm Holdings, whose technology powers nearly all of the world’s smartphones, as the country aims to go beyond chip assembly and up the value chain.
The global semiconductor sector, which is projected to be worth US$1 trillion by 2030, is being shaped by the tech rivalry between the US and China, as the two powers seek dominance in advanced chips at the core of everything from smartphones to supercomputers.
Malaysian Prime Minister Anwar Ibrahim is set to sign the deal with Arm CEO Rene Haas on Wednesday, in a break from the company’s past practices, which usually partners with global tech giants.
Malaysia would invest directly in Arm’s IP to make it available to local firms to accelerate their entry into the advanced chipmaking sector, the government said.
The deal will help create 10,000 highly skilled workers in integrated circuit design trained by Arm’s experts.
Arm holds a unique position as a major non-manufacturing player in the semiconductor industry.
