Anwar says semiconductor industry to be national priority as UK chip maker set to open first South-east Asian office in KL

KUALA LUMPUR, March 5 — Prime Minister Datuk Seri Anwar Ibrahim wants Malaysia to accelerate efforts to become a global semiconductor production nation.

He said he wants to turn Malaysia from a production hub into a leader in high value semiconductor activities.

“The government has made semiconductors a national priority, committing significant resources and a structured long-term strategy to drive this transformation.

“Today, Malaysia’s collaboration with Arm represents the start of the second semiconductor wave. This marks a fundamental shift in our approach to semiconductors and technology that will define our future.

“Through a comprehensive partnership with Arm, we have conceived one of the most ambitious technological plans Malaysia has ever seen to pioneer made-by-Malaysia AI,” he said at the launch of the strategic collaboration in the semiconductor industry here this afternoon, referring to leading UK firm Arm Holdings Plc.

The national semiconductor strategy, launched last year, aims to position Malaysia as a leader in high-value semiconductor activities, moving beyond its traditional role in assembly and testing to focus on design, advanced packaging, and front-end manufacturing.

Malaysia is working to become a global semiconductor hub by focusing on high-value activities such as chip design, semiconductor manufacturing equipment, advanced packaging, and front-end processes.

A key component of this transformation is Malaysia’s strategic partnership with Arm which will drive the development of locally designed AI chips.

These chips will be designed, manufactured, tested, and assembled in Malaysia, positioning the country as a major player in the global semiconductor supply chain.

“This marks a fundamental shift in our approach to semiconductors and technology that will define our future,” Anwar said.

He said Arm will set up its first South-east Asian office in Kuala Lumpur and all agencies must step up their efforts to provide education and training necessary for the future labour force in this industry.

“Our universities and educational institutions must start this programme immediately. Ministers must receive monthly reports on their plans in collaboration with Arm and industry leaders,” Anwar said.

Economy Minister Rafizi Ramli, who was also present, envisions Malaysia manufactur its own chip for the world market within the next decade.

“I hope to see a Malaysian chip go into the world market in five to 10 years. To do that, ensuring we have the right ecosystem, is important.

“It’s a long term vision so we must go to higher education and universities to make sure the talent pipeline is there to fulfill the needs of the industry,” he said.

The government estimates the collaboration will create skilled jobs for some 10,000 workers.