Arm Holdings Plc, owned by SoftBank Group Corp., has agreed to provide chip designs and technology to Malaysia over the next decade. The aim is to propel the Southeast Asian country from chip assembly to more valuable semiconductor production. Malaysia, which packages about a tenth of the world’s semiconductors, has signed a $250 million, ten-year agreement with Arm for semiconductor-related licenses and expertise. The government plans to use this to help local companies design their own chips, targeting semiconductor exports of 1.2 trillion ringgit ($270 billion) by 2030. The deal is expected to create up to 10 chip companies with total annual revenue of $20 billion and could add one percentage point to the country’s GDP. Malaysia is already a key hub for chip testing and packaging but has yet to make a significant move into chip design. The country hosts chip-packaging facilities for Intel Corp., GlobalFoundries Inc., and Infineon Technologies AG, and local chip gear makers are entering the global equipment supply chain. Malaysia pledged at least 25 billion ringgit to support its semiconductor industry last year, with the goal of beginning local chip production within the next five to ten years. A robust local tech ecosystem led by domestic chipmakers would enhance Malaysia’s global profile and drive the development of advanced manufacturing processes. Given geopolitical uncertainties, supporting local chipmaking has become a top priority, as roughly two-fifths of Malaysia’s exports consist of electric and electronic products.