
Malaysia has officially entered the global race for artificial intelligence technology with the unveiling of its first locally designed AI processor, the MARS1000, Bloomberg reported.
Developed by SkyeChip, a Malaysian semiconductor company, the MARS1000 was introduced at an industry event attended by senior government officials, marking a significant milestone for the country’s ambitions in the tech sector.
The chip is Malaysia’s first edge AI processor, designed to power devices such as autonomous vehicles, robots, and other smart machines. The development was highlighted by the Malaysia Semiconductor Industry Association, emphasising the country’s growing footprint in semiconductor innovation.
Malaysia is a critical player in the global semiconductor supply chain, particularly in packaging and manufacturing. It hosts manufacturing operations for major technology companies like Lam Research.
More recently, Malaysia has been positioning itself as a key hub for AI data centres, attracting significant investments from global corporations such as Oracle and Microsoft. The introduction of the MARS1000 aligns with Malaysia’s broader strategy to capitalise on the expanding AI market.
The MARS1000 is not as advanced or powerful as the high-performance AI chips developed by companies like Nvidia, which are used in massive data centres and for large-scale algorithm training.
The Malaysian government, led by Prime Minister Anwar Ibrahim, has committed substantial resources of around $6 billion over several years to develop the country’s semiconductor and AI sectors.
In addition, the US government proposes estrictions on the export of AI chips to Malaysia and Thailand out of concern that these countries are being used as transit points to funnel sensitive semiconductor technology to restricted markets, notably China. In response, Malaysia is tightening controls on AI chip exports, stressing its commitment to preventing illegal trade.
SkyeChip is a Malaysian semiconductor design company, founded in 2019, specializing in advanced ASICs and IP solutions for AI and high-performance computing. With a team of 330 engineers and over 100 patents, the company is focused on innovation and positioning itself for growth, with plans for a potential IPO in Malaysia.



