The Penang Silicon Design @5km+ initiative, spearheaded by the Penang State Government through InvestPenang, marks a significant milestone in enhancing the state’s integrated circuit (IC) design capabilities. This ambitious initiative aims to create a robust ecosystem for IC design and technology enterprises within a 5km+ radius of the Bayan Lepas industrial park.
The initiative comprises three key components: the Penang IC Design and Digital Park @Bayan Lepas, the Penang Chip Design Academy @Penang Skills Development Centre, and the Silicon Research and Incubation Space @GBS TechSpace. The Penang IC Design and Digital Park, developed by the Penang Development Corporation, offers approximately 1 million square feet of premium hybrid office and lab space tailored for IC design, research and development, and digital companies.
The Penang Chip Design Academy is designed to deliver a Chip Design Talent Cultivation Programme, aimed at upskilling and reskilling at least 500 fresh graduates and engineers in IC design-related fields over the next two years. This program is part of the state’s efforts to develop local firms within the semiconductor design space.
The Silicon Research and Incubation Space at GBS TechSpace serves as a one-stop innovation hub to support chip design companies, offering cutting-edge infrastructure, design services, essential electronic design automation (EDA) tools, intellectual property, and expertise in packaging and technical disciplines. This facility is expected to become fully operational by the end of April 2025 and will house local startups and expanding companies such as Filpal, Infinecs Lab, Silicon X, SkyeChip, and Sophic Automation.
The initiative has garnered strong support from the Federal Government, with the Ministry of Economy approving initial funding for 2024. The Penang State Government has allocated RM60 million to drive this initiative, with plans to secure an additional RM60 million from the Federal Government. The total investment for the initiative is projected at RM120 million over the next five years.
Attractive incentive packages worth up to RM2 million annually for each company for a three-year period are being offered. These incentives include subsidies for space and utilities, access to technology collaborators’ facilities, and a talent development programme through the Penang Chip Design Academy. These measures are contingent upon securing the additional RM60 million funding from the Federal Government.
The presence of five global giants—Alchip, AMD Global Services, Celestica, Microsoft, and Monolithic Power Systems—at the Penang IC Design and Digital Park is expected to drive significant spillover effects to local start-ups, fostering knowledge transfer and sparking innovation across the sector. This establishment solidifies Penang’s position as Malaysia’s IC design hub, hosting over 40 IC design-related local and international companies.
According to Chow Kon Yeow, Chief Minister of Penang, the initiative is a strategic move to strengthen Penang’s leadership in the IC design industry. “With its integrated ecosystem within the vibrant 5km+ area, the Penang Silicon Design @5km+ initiative offers a unique value proposition, benchmarking itself against IC design hubs in Silicon Valley in San Jose, USA, and Taiwan,” he said.
“Through this initiative, Penang is positioning itself at the intersection of IC design and Artificial Intelligence (AI), setting the stage for the next phase of technological evolution in Malaysia and Southeast Asia,” Chow added.
Prime Minister Datuk Seri Anwar Ibrahim emphasized that the Penang Silicon Design @5km+ initiative is set to revolutionize Malaysia’s semiconductor industry and is fully aligned with the National Semiconductor Strategy (NSS).
Sources:
- https://www.buletinmutiara.com/penang-silicon-design-5km-initiative-launched-to-elevate-ic-design-industry/
- https://www.digitalnewsasia.com/business/penang-launches-penang-silicon-design-5km-initiative-advancing-malaysia-global-ic-design
- https://investpenang.gov.my/press-release-penang-launches-the-penang-silicon-design-5km/