PENANG launched the Penang Silicon Research & Incubation Space, a pivotal element of the Penang Silicon Design @5km+ initiative, and efforts to produce the first made by Malaysian semiconductor chip.
Chief Minister Chow Kon Yeow officially launched both initiatives at the GBS TechSpace in Bayan Lepas, marking another milestone in the state’s mission to lead Malaysia’s integrated circuit (IC) design scene.
Chow unveiled the advanced chip technologies by SkyeChip, proudly designed by Malaysian engineers in Penang, and was given an update on the progress by Silicon X, which is currently developing a homegrown proprietary chip in Malaysia.
Both projects underscore the state’s growing role in driving “Made by Malaysians” innovation in the semiconductor sector.
The GBS provides access to high-spec server environments, cutting-edge labs, and industry-standard EDA tools and equipment, alongside a robust support ecosystem of technical consultation, expert mentorship, and collaborative development programmes.
Chow said that with the launch of this space, the aspires to nurture even more homegrown IC design champions and “Made by Malaysia” chips — reinforcing Penang’s position as the Silicon Valley of the East.”
Penang has since committed RM60 million, with an additional RM50 million in federal co-funding.
Eligible local IC design companies may access to subsidies to support operating expenses such as rental, utilities, Multi-Project Wafer (MPW) services, testing, and talent development.
This represents one of the most comprehensive IC design support packages in Malaysia.
“Our effort also reaffirms Penang’s commitment to aligning with the National Semiconductor Strategy (NSS), which charts Malaysia’s goal to move up the value chain through higher value-added activities such as IC design," said Chow.
“This Silicon Research and Incubation Space is envisioned as a one-stop centre designed to cultivate a vibrant community of next-generation AI-driven IC design thinkers, engineers, and entrepreneurs.
“It also provides access to high-spec server environments, cutting-edge lab facilities, and industry-standard Electronic Design Automation (EDA) tools and equipment, which are critical enablers for IC design and development.
Chow highlighted that Penang is already home to more than 45 local and international IC design companies, forming Malaysia’s largest IC design cluster.
He emphasised that the Penang Silicon Design @5km+ initiative is more than just a development strategy as it represents a bold, integrated approach to connecting industry, government, and academia in building a holistic, end-to-end IC design ecosystem.
“This initiative goes beyond infrastructure; it is about creating a dynamic, collaborative environment that positions Penang as Malaysia’s hub for IC design and AI-driven innovation,” he concluded. - July 2, 2025.
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