Malaysia

Penang on target to becoming global integrated circuit hub, says Kon Yeow

State CM says this will happen with creation of Global Business Services by the Sea centre.

Updated 2 years ago · Published on 24 Jul 2024 1:12PM

Penang on target to becoming global integrated circuit hub, says Kon Yeow
Penang Chief Minister Chow Kon Yeow says the Global Business Services by the Sea centre will begin operations in December and is in line with the state government’s desire to make Penang a prime investment destination for such activities. – The Vibes file pic, July 24, 2024.

by Ian McIntyre

PENANG’s reach as a global integrated circuit (IC) hub would be realised by December as a centre called Global Business Services (GBS) by the Sea – devoted exclusively to circuit design as well as research and development (R&D), begins operations.

The building in the satellite township of Bayan Baru will have a state-of-the-art office space equipped with lab facilities, and it is meticulously designed to house three prominent service centres for design, R&D, and engineering.

In a statement, Chief Minister Chow Kon Yeow said this was in line with the state government’s desire to drive the economy by making Penang a prime investment destination for global business services activities.

Multinational semiconductor company AMD Global Services will be one of the largest tenants, as the company will be renting almost 70% of GBS by the Sea’s floor space.

GBS by the Sea is part of the Penang IC Design and Digital Park launched in May, which offers a total of one million square feet of premium office space to house high-impact activities including IC design, R&D, digital global business services, and digital tech investments. 

This building stands as a prominent seafront building offering an excellent view of the sea and the Sultan Abdul Halim Muadzam Shah Bridge. 

The nine-storey building provides a net lettable area of 294,000 square feet, equipped with 830 parking bays.

A unique feature of GBS by the Sea is its two 11kV power substations, making it the first building in Malaysia to offer this advanced infrastructure. 

In addition, the building boasts a floor loading capacity of 5KN/m2, which is ideal to house IC design and R&D companies. 

Moreover, the building also meets the standards of a Malaysia Digital building, further underscoring its premium facilities and technological capabilities.

GBS by the Sea will be fully occupied by three prominent tenants: AMD, Celestica, and another US tech giant. AMD announced its expansion plan last year to support its growth in GBS and engineering expertise and Celestica will be establishing their first Malaysia R&D and Design and Development Centre in Penang. 

The building is expected to create approximately 2,000-3,000 high-value jobs.

“Penang is set to become a catalyst for Malaysia to ascend the value chain and cement its position as the preferred investment destination for high-end activities in the region. We are committed to advancing technology, industry, and the economy to enhance the state’s competitiveness globally. Through Penang's sustainable ecosystem, the state is confident that we are well-positioned to realise this vision,” Chow said.

As Penang continues to emerge as a thriving hub for GBS and as a centre of excellence supported by its conducive business environment and robust ecosystem, the availability of premium office space is essential to attracting multinational companies.

Penang is committed to investing in the establishment of high-end office spaces to attract and retain top-tier businesses and talent.  

Over the past 30 years, Penang had attracted 28 IC design companies, including industry giants such as Intel, AMD, Oppstar Technology, SkyeChip, Infinecs Systems, Microchip, UST Global, Lattice, and Synopsys, Chow added. – July 24, 2024. 

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