A Japanese firm unveiled plans to produce a revolutionary microchip in Malaysia as Prime Minister Dr Mahathir Mohamad held talks here with global hi-tech chiefs.

FEC (M) Sdn. Bhd chief executive Kunioki Ichioka was quoted by the Malay-language Utusan Malaysia as saying the patent for producing and marketing the MM chip would be shifted to Malaysia in six months.

Measuring 0.5 of a square milimeter and produced at less than 38 sen each, he said the chip would cut the production cost of Malaysia's national "smart identity card" from RM7 to RM1.