As Putrajaya doubles down on semiconductors, Penang says committed to strengthen position as part of global chip supply chain

GEORGE TOWN, April 24 — Penang is committed to strengthening the state’s position as part of the global chip supply chain, Chief Minister Chow Kon Yeow said today as Putrajaya ramps up the country's efforts to be an emerging powerhouse.

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He said the state government has remained steadfast in securing strategic investments to boost its economy and solidify its position as a preferred investment destination in the Asia-Pacific region.

“Penang with its expertise in the manufacturing sector for over five decades has become a ‘natural magnet’ for back-end chip manufacturing and is expected to further integrate with the global chip supply chain in the upcoming decades,” he said in a statement issued here.

The Penang lawmaker said the state government has taken measures in its strategies to diversify its core industries, namely in the electronic and electrical (E&E) sector, in order to compete on the world stage.

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“The introduction of the Penang Silicon Island (PSI) will serve as a pathway for the inducement of investment diversification,” he said.

“High-tech manufacturing, assembly, test and advanced packaging, automation, robotics, artificial intelligence (AI), Internet of Things (IoT), medical devices, and GBS will be the future of Penang’s manufacturing marvel,” he added.

He said Penang is currently home to over 20 companies specialising in Integrated Circuit (IC) design, with multinational corporations (MNCs) accounting for 85 per cent of the sector.

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This included global players such as Intel, AMD, Lattice, Microchip, Efinix, StarFive and Synopsys.

“As a result, Penang has developed a complex yet dynamic E&E and semiconductor ecosystem that has consequently enabled the nurturing of three homegrown IC design corporations such as SkyeChip, Oppstar Technology, and Infinecs Systems,” he said.

He said the state government, through Penang Development Corporation (PDC), is investing RM220 million to construct two new Global Business Service (GBS) buildings, namely ‘GBS by the Sea’ and ‘GBS Tech Space’.

He said the buildings will offer state-of-the-art office space and lab facilities, totalling approximately 360,000 sqft of space.

“Completion is anticipated by Q4 of this year,” he said.

Chow commended the Selangor state government and the federal government’s investments of RM65 million and RM60 million respectively into the construction of Selangor Information Technology and Digital Economy Corporation’s (Sidec) Malaysia Semiconductor Accelerator and Integrated Circuit (IC) Design Park — touted to be the biggest in Southeast Asia.

He also welcomed the introduction of the New Industrial Master Plan 2030 (NIMP 2030) to woo future investors to Malaysia.