PENANG will proceed with its plans to upskill the local workforce in advanced semiconductor testing technologies despite ongoing uncertainty surrounding potential US import tariffs on semiconductor components.
Invest Penang chief executive officer Datuk Loo Lee Lian said the state remains committed to strengthening its capabilities in automatic testing equipment (ATE) – a vital part of the electrical and electronics (E&E) ecosystem – even as global trade policies remain unpredictable.
“It is a work in progress, and we plan to disclose something soon on an ATE campus which we will establish,” Loo said.
She explained that Penang’s strategy for value creation within the E&E sector consists of three key components: the Penang IC Design and Incubation Hub launched last year; the upcoming ATE initiative; and targeted upskilling efforts across strategic industry support and focus business groups.
Loo acknowledged the uncertainty caused by recurring reports that the United States may impose tariffs on semiconductor-related products – a move that would directly affect Penang’s manufacturing sector.
“The uncertainty is unsettling us all, but we must be ready to improve our competencies,” she said, adding that the first thing she does each morning is to check the latest social media updates from US President Donald J. Trump, particularly on tariff policies.
While there are currently no tariffs in place affecting Penang-made semiconductors, Loo noted that Malaysia’s role in the global E&E supply chain remains crucial, particularly in providing components used in US manufacturing sectors such as automotive.
ATE refers to specialised systems that automate the testing of electronic components and devices, ensuring they meet functional and quality standards before being deployed.
Loo made the remarks after witnessing the signing of several industry-academia partnerships aimed at supporting Malaysia’s National Semiconductor Strategy and the AI Nation 2030 aspirations.
The signing was held at Wawasan Open University (WOU), with WOU chief executive and vice-chancellor Prof Dr Lily Chan and board of governors chair Tan Sri Dr Koh Tsu Koon in attendance.
The new partners include Fourier TVET Centre, MI Equipment and 3REN. Chan said WOU’s role in the initiative is to continue building talent through flexible, work-oriented education pathways.
“WOU has empowered over 28,000 adult learners since 2006, and we are committed to supporting national goals in semiconductor and AI development,” said Chan. - October 1, 2025
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