# Malaysia semiconductor industry development > Live situation record from CLSTR: https://clstr.news/situations/malaysia-semiconductor-industry-development > Updated: 2026-08-22T01:00:00.000Z. Sources: 4. Developments: 2. Malaysia is undergoing a structural transition in its semiconductor industry, moving from traditional assembly and testing toward high-value chip design and advanced manufacturing. Under the National Semiconductor Strategy, the government is fostering partnerships to advance domestic capabilities. Through a strategic partnership with Arm Limited, Malaysia aims to begin production of its first semiconductor products by 2030. Currently, eight entities are involved in the early stages of design or technology assessment, with the design phase for the first group of companies expected to conclude around 2028. This shift is supported by significant investment; in the first quarter of 2026, the electrical and electronics sector contributed RM6.0 billion toward RM92.8 billion in total approved investments. Companies such as GreatAsic Technology Sdn Bhd are expanding front-end integrated circuit (IC) design operations for artificial intelligence and electric vehicle technologies. The growth of the sector is also visible in the financial markets, highlighted by the successful market debut of SkyeChip, a Penang-founded firm specializing in silicon intellectual property and application-specific integrated circuits. ## Timeline ### 2026-08-22: Malaysia semiconductor industry shifts toward high-value chip design Malaysia's semiconductor sector is transitioning toward high-value chip design and advanced manufacturing, fueled by massive investment inflows and the emergence of new homegrown tech firms. 2 sources. https://clstr.news/cluster/malaysia-semiconductor-industry-shifts-toward-high-value-chip-design ### 2026-08-21: Malaysia targets 2030 for first Arm-partnered chip production Malaysia targets 2030 for the production of its first semiconductor chips developed via a strategic partnership with Arm Limited. 2 sources. https://clstr.news/cluster/malaysia-targets-2030-for-first-arm-partnered-chip-production --- Cite as: Malaysia semiconductor industry development. CLSTR, https://clstr.news/situations/malaysia-semiconductor-industry-development