Malaysia unveils first edge AI processor MARS1000

Malaysia has launched its first edge AI processor, MARS1000, developed by local designer SkyeChip and introduced at an industry event attended by senior government officials.

Founded in 2019, SkyeChip is a Malaysian chip design firm specialising in artificial intelligence (AI) and high-performance computing.

While it remains unclear where SkyeChip will manufacture its designs, the debut marks a milestone in Malaysia’s push to climb the global chip value chain, Bloomberg reported on Monday.


An edge AI processor is a specialised chip designed to run AI-based tasks directly on devices rather than relying on distant cloud servers or data centres.

Analysts had noted that Malaysia’s strength in assembly, testing, marking and packaging (ATMP), coupled with a skilled workforce, strong supply chains, and government backing, makes it an attractive hub for such innovations.

The report further added that Malaysia is looking to play a major role in the global chip supply chain.

Investment pool

The Malaysian government’s National Semiconductor Strategy was announced in May 2024, offering a significant incentive structure to attract investments.

Malaysia, a major player in the semiconductor industry that accounts for 13% of global testing and packaging, is targetting over $100 billion in investment for the sector, Reuters reported.

ET reported that Tata Electronics was in talks with several global semiconductor companies, including X-Fab, DNeX, and Globetronics, to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia.

Coming to data centres, the Southeast Asian country had drawn investments from Oracle, Alphabet’s Google and Microsoft in the past.