Malaysia will pay Arm Holdings $250 million over 10 years to acquire the firm's chip design plans for local manufacturers, the government said on Wednesday as it looks to produce its own chips within the next decade amid an AI boom.

British chip giant Arm Holdings signed an agreement withMalaysiaon Wednesday to bolster the Southeast Asian country s efforts to

Malaysia hopes its Arm deal will help foster 10 local chip companies with annual revenue between $1.5 billion to $2 billion each.