Malaysia, Brazil Ink Semiconductor Cooperation Pact to Drive Global IC Innovation

Malaysia and Brazil Formalize Semiconductor Alliance

On October 13, 2025, Malaysia announced it will sign a landmark semiconductor cooperation memorandum with Brazil, marking a pivotal moment in Southeast Asia–South America technology relations. The agreement, revealed by Deputy Investment, Trade and Industry Minister Liew Chin Tong in Parliament, targets deepened industrial collaboration—especially in integrated circuit (IC) design and talent development—while advancing Malaysia’s ambition to diversify trade beyond traditional partners such as the United States.

Strategic Focus: IC Design, Talent, and Supply Chain Resilience

Malaysia is currently the world’s sixth-largest semiconductor exporter, with annual exports surpassing US$85 billion. In contrast, Brazil’s semiconductor export value is US$1.2 billion as of 2022, but the country holds a competitive edge in IC design. The new memorandum will channel this complementary strength into joint ventures, research and development, and comprehensive talent programmes.

According to officials, expected initiatives include:

• Joint projects between Malaysian entities (such as MIMOS Bhd) and Brazilian counterparts (like the Eldorado Institute).
• Cross-border R&D and technology transfer, leveraging Malaysia’s manufacturing scale and Brazil’s design know-how.
• Talent development schemes, including advanced training and exchange programmes for engineers and chip designers.

Building on Prior Partnerships and Global Ambitions

The memorandum builds on a foundation of previous MoUs and year-long dialogues between stakeholders, notably following Prime Minister Anwar Ibrahim’s official visit to Brazil in November 2024. During this visit, agreements were signed between leading industry bodies and research institutions from both nations, setting the stage for today’s announcement.

Malaysia’s strategic approach aligns with the government’s MADANI policy, which emphasizes strengthening ties with BRICS nations and the African continent. Officials have underscored that reducing reliance on established export markets is vital for long-term economic stability and supply chain resilience.

Industry and Public Response: Optimism and Opportunity

Local media and government officials in Malaysia have greeted the semiconductor cooperation memorandum with broad optimism. Industry stakeholders highlight the agreement as a catalyst for joint research, workforce upskilling, and the opportunity for Malaysian firms to tap into Brazil’s unique IC design expertise. The move is widely seen as a step toward a more robust and diversified semiconductor ecosystem, safeguarding Malaysia’s position in the global supply chain.

Looking Forward: Global Semiconductor Leadership

The Malaysia-Brazil semiconductor memorandum is already spurring new initiatives. The Malaysia Semiconductor IC Design Park, for example, has announced further partnerships with Brazilian organizations and global tech leaders, aiming to train a new generation of chip designers and accelerate digital transformation through cloud-based platforms.

As Malaysia and Brazil move from agreements to action, the coming year promises to be transformative for both nations and the broader semiconductor industry.

This news has been drafted after going through following Sources:

• The Sun – Malaysia and Brazil sign semiconductor cooperation memorandum
• Bernama – Brazil, Malaysia To Set Up Joint Development On IC Design In 2025
• MIDA – Brazil-Malaysia to set up joint development on IC design in 2025
• BusinessToday – Malaysia To Sign Semiconductor Pact With Brazil, Eyes India’s Tech Collaboration
• Digital News Asia – Malaysia semiconductor IC Design Park strengthens global semiconductor collaboration with Brazil and AWS