{
  "id": 15861628,
  "title": "Complex chip development can cost up to US$300 million",
  "url": "https://urgent.news/2026/10/21/complex-chip-development-can-cost-up-to-us-300-million",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-10-21T08:18:06.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/news/nation/2026/10/1560635/complex-chip-development-can-cost-us300-million"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Developing semiconductor chips, even simple ones, can set local companies back by approximately US$50 million, with complex chips costing up to US$300 million, according to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. The high expenses present a significant hurdle for firms venturing into the industry's upstream segment, as the government's partnership with global technology company ARM only covers part of the costs, not the entire expense.\n\nJohari explained that the collaboration with ARM, established in 2025, offers two types of tokens, Compute Subsystem (CSS) and ARM Flexible Access (AFA), to assist local companies in crafting integrated circuit chip designs. This partnership may trim development time by up to two years, expediting companies' quests to establish their intellectual property. Of the seven CSS tokens, four have been released thus far.\n\nDespite the tokens' estimated worth ranging between RM30 million and RM40 million, companies still require supplementary funding to complete the chip development process, which typically spans two to two-and-a-half years, contingent on the technology employed.",
  "summary": "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.",
  "key_points": [
    "Government-ARM partnership covers part of costs, not entire expense.",
    "CSS tokens, worth RM30-40 million, help reduce chip development time."
  ],
  "editors_take": "The massive capital requirements for semiconductor design force local firms to seek supplementary funding even with government-backed partnerships designed to accelerate their intellectual property development.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}