Malaysia Targets Local ARM Chip Production for 2030

August 22, 2026 subimpact team 0 comments

Malaysia Targets Local ARM Chip Production for 2030

Malaysia Targets Local ARM Chip Production for 2030

Malaysia is pursuing a national strategy to produce locally manufactured ARM chips, with the government targeting the start of production by 2030. The initiative is driven by the Ministry of Economy and involves the distribution of special collaboration tokens provided by ARM, the company that designs the chip architecture.

The initiative was announced by Economy Minister Akmal Nasrullah Mohd Nasir. The core problem being solved is the need for Malaysia to establish a more resilient and higher-value domestic semiconductor supply chain, reducing reliance on foreign chip fabrication and ensuring that chip manufacturing activities take place in the country.

Key Facts

The following table summarizes the key factual anchors from the government's announcement. Specific commercial details such as pricing or exact production yields are not provided in the original announcement.

Attribute Value
Target Production Year 2030
Technology Provider ARM Holdings (via Arm Ltd.)
Recipient Companies Oppstar Technology Sdn Bhd, Alphaswift Industries Sdn Bhd
Access Programme Arm Flexible Access programme and Arm Compute Subsystem technology
Development Timeline At least three years to develop chip designs
Token Allocation Date One token provided to a company last year (design completion expected by 2028)
Next Allocation Status Several companies under evaluation by a technical committee
Government Priority Chip manufacturing in Malaysia and recruitment of highly skilled local engineers

How Does the ARM Token Program Work?

Malaysia’s ARM token program is a government-coordinated initiative where technology partners receive tokens that provide access to Arm's architecture. According to Economy Minister Boun Nasrullah Nasrullah Nasrullah, the tokens require at least three years to develop chip designs before a first product can be produced.

One of these tokens was provided to a company last year, setting a design completion target for 2028. The government has offered letters to Oppstar Technology Sdn Bhd and Alphaswift Industries Sdn Bhd, providing them access to the Arm Flexible Access programme to accelerate the development of integrated circuit designs and semiconductor technology.

**"So, the value that we are trying to create will be multiplied, not only through the company's ability to produce its own chips, but also through these related linkages,"**

Source: The Edge via Lowyat.NET

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