KUALA LUMPUR: Developing complex semiconductor chips can cost up to US$300 million, posing a major challenge for local companies seeking to venture into the industry's upstream segment.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the high costs meant companies needed substantial capital to develop chips tailored to their technologies and requirements.
He said the government's collaboration with global technology company ARM provided access to technology but did not cover the full cost of chip development.
"Even a simple chip costs about US$50 million, while a complex chip can cost up to US$300 million," he said in the Dewan Rakyat.
He was responding to a question from Datuk Ku Abd Rahman Ku Ismail (Bersatu-Kubang Pasu).
Johari said the collaboration with ARM, signed in 2025, provides two types of tokens — Compute Subsystem (CSS) and ARM Flexible Access (AFA) — to help local companies develop integrated circuit chip designs.
He said access to the technology could shorten development time by up to two years, accelerating efforts by companies to develop their own intellectual property.
"Of the seven CSS tokens, we have only provided four so far," he said.
Johari said the tokens provided were estimated to be worth between RM30 million and RM40 million, but companies still needed additional funding to complete chip development.
The development process is expected to take between two and two-and-a-half years, depending on the technology used.
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