Since 2000, Penang has been home to over 20 companies specializing in Integrated Circuit (IC) design, with Multinational Corporations (MNCs) accounting for 85% of the sector, including global players such as Intel, AMD, Lattice, Microchip, Efinix, StarFive, Synopsys, etc.
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 i.e.: SkyeChip, Oppstar Technology, and Infinecs Systems.
The Penang State government, through Penang Development Corporation (PDC), is currently investing RM220 million in constructing two new campus Global Business Service (GBS) buildings, namely, ‘GBS by the Sea’ and ‘GBS Tech Space’. These 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.
The tenants in these buildings will also benefit from a range of incentives provided by MDEC under the Malaysia Digital scheme and the newly announced incentives that were introduced by Minister of Economy, Rafizi Ramli during the KL20 summit.
In response to recent comments made in a Chinese daily, the Penang state government has remained committed and steadfast in securing strategic investments that will bolster Penang’s economic trajectory 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.
As Penang competes on the world stage, the state government has taken proactive measures to implore strategies on diversifying its ‘bread and butter’. The introduction of the Penang Silicon Island (PSI) will serve as a pathway for the inducement of investment diversification. 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.
In conjunction with that, the Penang state government commends the Selangor state government as well as the Malaysian government’s investments of RM65 million and RM60 million respectively into the construction of an IC Design park within its state.
In closing, the Penang state government will remain committed to working closely with the Malaysian government for the betterment of its people and economy. Thus, the Penang state government in tandem with the New Industrial Master Plan 2030 (NIMP 2030) welcomes the Malaysian government’s efforts to introduce new incentives that will woo future investors, MNCs, and foreign firms to invest in Malaysia.