KUALA LUMPUR (May 25): Oppstar Bhd (KL:OPPSTAR) has secured access to advanced chip design tools from Arm Holdings plc under the Malaysian government’s strategic collaboration with the UK-based semiconductor giant.
The agreement, signed with the Malaysian Investment Development Authority (Mida), gives Oppstar access to Arm’s Flexible Access (AFA) Token - Entry Tier, which provides engineering design and software tools for semiconductor development.
The tools will be used for Oppstar’s ongoing research and development of an artificial intelligence system-on-chip (AI SoC) designed for low-power edge AI devices using 12-nanometre technology, according to a bourse filing.
The deal follows the government’s announcement on May 11 of its collaboration framework with Arm to strengthen Malaysia’s semiconductor ecosystem. The definitive agreement was formalised on May 21 and received by Oppstar on May 25.
Mida awarded the access token to the group’s wholly-owned unit Oppstar Technology Sdn Bhd to support the rollout of the AI chip development project.
The project will run for one year from the effective date of the order form signed by Oppstar Technology for access to the AFA token and related package.
Oppstar said the agreement is not expected to materially affect the group’s earnings, earnings per share, net assets per share or gearing for the financial year ending March 31, 2027.
The related administrative and operational costs will be funded internally and are within the group’s existing operating expenditure budget, it added.
Oppstar’s share price has taken a roller coaster ride amid the global bullish sentiment on AI-related companies.
The stock more than tripled from around 35 sen to a peak of RM1.05 on May 19 before paring some gains to close at 63.5 sen, giving the group a market capitalisation of RM408.6 million.