Malaysia Enters AI Chip Race

Malaysia Enters AI Chip Race

26 August 2025

Malaysia has unveiled its first domestically designed AI processor, the MARS1000, developed by SkyeChip. This marks a significant step for the nation, signalling its ambition to move beyond semiconductor packaging and testing to become a key player in AI innovation. The MARS1000 is an edge AI processor built on 7-nanometer process technology, designed for tasks in cars, robots, factory machinery and connected devices.

Unlike power-hungry GPUs used in data centres, the MARS1000 is intended for smaller, more efficient applications across industries like agriculture, manufacturing (Industry 4.0), and smart cities. The chip aims to foster AI learning systems and cultivate AI expertise among Malaysian students. The Malaysian government is investing heavily in the chip sector, with Prime Minister Anwar Ibrahim pledging RM25 billion to boost capabilities across chip design, wafer fabrication and AI-ready data centres. This initiative includes comprehensive training programmes to develop 10,000 IC design engineers.

With the launch of MARS1000, Malaysia aims to build a complete supply chain for advanced industries, from AI data servers to autonomous vehicles and robotics. This positions Malaysia to compete in the global AI landscape and drive economic growth through innovation, job creation and investment.

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Published on 26 August 2025
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