The Penang government’s ambitious initiative, the Penang Silicon Design @5km+, has been a focal point in the state’s efforts to bolster its integrated circuit (IC) design capabilities and solidify its position as a leader in the semiconductor industry. However, the recent report suggesting that the Penang Silicon Design Park has received RM50 million in federal support appears to be inaccurate based on the available information.
The Penang Silicon Design @5km+ initiative is a comprehensive program aimed at creating a unique and interconnected ecosystem for IC design and technology enterprises within a 5km+ radius of the Bayan Lepas Industrial Park. This initiative involves a total investment of RM120 million over five years, with the Penang State Government committing RM60 million and seeking an additional RM60 million in matching grants from the Federal Government.
Chief Minister Chow Kon Yeow has emphasized the importance of federal support, stating that the state government is prepared to allocate RM60 million but is seeking the additional funding to bring the total to RM120 million. This investment is crucial for enhancing the IC design ecosystem, supporting both front and back-end operations of the semiconductor industry, and aligning with the New Industrial Master Plan (NIMP) 2030 and the National Semiconductor Strategy (NSS).
The initiative includes three key projects: the Penang IC Design & Digital Park @Bayan Lepas, the Penang Chip Design Academy @PSDC, and the Silicon Research and Incubation Space @GBS TechSpace. These projects are designed to provide premium office space, talent cultivation programs, and state-of-the-art facilities to support chip design start-ups and SMEs.
Despite the significant efforts and investments planned, there is no indication that the Penang Silicon Design Park has received RM50 million in federal support. Instead, the state government is still awaiting approval for the matching grant of RM60 million from the Federal Government, which is essential for the full implementation of the initiative.
The Penang government has also established an Executive Council and an Advisory Panel to ensure the success of the Penang Silicon Design @5km+ initiative. These bodies will promote synergies between industrial players, academia, and government agencies, and will oversee the strategic direction and governance of the project.
In addition to the IC design initiatives, Penang is also addressing its industrial land shortage through the development of Silicon Island, part of the Southern Penang Island (PSI) reclamation project. This development aims to provide industrial, commercial, residential, and tourism spaces, and is expected to have a significant economic impact, including a projected GDP contribution of RM1.1 trillion and the creation of 220,000 job opportunities.
While the Penang Silicon Design @5km+ initiative is a robust plan to enhance the state’s semiconductor industry, there is no current evidence to suggest that it has received RM50 million in federal support. The state remains hopeful for the additional federal funding necessary to fully realize the initiative’s potential.
Sources:
- https://www.buletinmutiara.com/penang-urges-federal-support-to-strengthen-semiconductor-industry-leadership/
- https://www.buletinmutiara.com/penang-govt-launches-special-council-and-panel-to-drive-ic-design-industry-forward/