Business

China to foster closer ties with Penang in tech industry

Beijing sees the state as a strategic partner in global electronics supply chain.

Updated 2 years ago · Published on 30 Jul 2024 6:40PM

China to foster closer ties with Penang in tech industry
Penang Chief Minister Chow Kon Yeow says a high number of China-based firms have shown interest in investing in the state’s industrial parks. – The Vibes pic by Ian McIntyre, July 30, 2024.

by Ian McIntyre

PENANG’s reputation as a regional tech hub in Southeast Asia has gained the full attention of China, the world’s second-largest economy, which sees the state as a strategic partner in the global electronics supply chain. 

Penang has cemented its place as a top ten supplier of electronic components – particularly essential chips to power digitalisation – and is of interest to China, which hopes to strengthen ties with its counterparts in manufacturing, services, and trade, said China Electronic Production Equipment Industry Association (Cepea) branch secretary-general Steven Huang. 

To indicate its commitment towards fostering closer ties, Cepea will collaborate for the first time with the Penang-based Malaysia Semiconductor Industry Association (MSIA) to organise the 2024 Asia-Pacific Semiconductor Summit and Exposition in Penang. 

The star-studded event aims to consolidate the state’s position as a leading player in the global supply chain of tech components and will be held from October 16 to 18 at the Setia SPICE Convention Centre in Penang. 

Huang said that Cepea is ready to work closely with MSIA to meet the supply and demand for semiconductors while harnessing the potential for tech growth. 

Penang Chief Minister Chow Kon Yeow, who was present at the joint press conference, said a high number of China-based firms had shown interest in investing in the state’s industrial parks. 

He said Penang was excited about the inquiries from Chinese firms, noting that while substantial investments had not materialised, there was potential for positive developments in future. 

“We are prepared to welcome these companies if they decide to invest here after their initial inquiries. Some Chinese firms are cautious about investing abroad, but we are optimistic about future opportunities,” Chow said. 

“The summit also represents a significant milestone for Penang and the broader Asia-Pacific region, facilitating important exchanges in the semiconductor industry,” he added.  

MSIA president Datuk Seri Wong Siew Hai said many Chinese firms are interested in establishing a presence in Penang. 

“Their expertise is highly valued, especially in specialised subsectors like materials, insulation layers, thermal management, and interface materials. Their involvement will strengthen our semiconductor ecosystem and provide a significant boost,” Wong said. 

He said MSIA was looking for value-added investments with a significant level of tech transfer to propel the country up the value chain of high-end manufacturing. 

Earlier, Chow participated in a dialogue session, moderated by MSIA secretary and Motorola Solutions Malaysia Penang operations vice-president Solomon Lorthu, with industry players on issues such as industrial land, traffic management, water problems, and infrastructure. 

Chow emphasised the importance of prioritising science, technology, engineering, and mathematics education. – July 30, 2024. 

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