Four of the seven Arm CSS tokens under Malaysia’s collaboration with Arm Ltd have been allocated to local companies for chip design.
KUALA LUMPUR: Four of the seven Arm Compute Subsystems (CSS) tokens under Malaysia’s strategic collaboration with Arm Ltd have been allocated to local companies to develop chips for automotive, data centre and mini-server applications.
Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani said three CSS tokens remained available, while about four of the 25 Arm Flexible Access (AFA) tokens had been allocated so far.
He said the collaboration, initiated by the Ministry of Economy in 2025, provides technology access to companies seeking to develop their own integrated circuit (IC) designs and intellectual property (IP).
“As of today, we are just getting started. So, of the seven CSS tokens, we have only allocated four,” he said in reply to a supplementary question from Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) on semiconductor companies involved in the strategic collaboration with Arm in the Dewan Rakyat today.
Johari said chips developed by the CSS token recipients were intended for applications in the automotive, data centre and mini-server sectors. However, he noted that development costs remained a key constraint for local companies seeking to venture into front-end activities in the semiconductor industry.
He explained that while access to the technology gave companies a head start, further development could take between two and two-and-a-half years, depending on the technology and type of chip involved. Even developing a relatively simple chip could cost about US$50 million, while more complex chips would require higher investment, he said.
On the New Incentive Framework (NIF), introduced in March 2026, Johari said incentives focused on more complex manufacturing capabilities, linkages with local supply chains, and the creation of high-income, high-value jobs.
He said investors applying for incentives must demonstrate how their investments would establish links with local suppliers and benefit the country’s supply chain. “The jobs created must be high-income and high-value jobs,” he added.
Johari said incentives under consideration included investment tax allowances and special tax treatment, with certain applications assessed on a case-by-case basis.