The Penang Silicon Design @5km+ initiative was officially launched yesterday, heralding a new era in Malaysia’s integrated circuit (IC) design landscape. Spearheaded by InvestPenang under the Penang state government, the initiative seeks to establish a thriving IC design ecosystem within a 5km+ radius of the Bayan Lepas industrial park.

Prime Minister Datuk Seri Anwar Ibrahim and Chief Minister Chow Kon Yeow officiated the launch at Eastin Hotel Penang, marking the beginning of this ambitious project.

Central to the initiative is the GBS TechSpace, now serving as the Silicon Research & Incubation Space. Alongside this are two other key components: the Penang IC Design and Digital Park @Bayan Lepas and the Penang Chip Design Academy @PSDC. These components form the backbone of a strategy aimed at cementing Penang’s position as Malaysia’s IC design hub.

Chow highlighted Penang’s goal of aligning with global benchmarks like Silicon Valley. “With its integrated ecosystem within the vibrant 5km+ area, Penang is positioning itself at the intersection of IC design and Artificial Intelligence (AI), driving the next phase of technological evolution,” he said.

The state government has allocated RM60 million to fund the initiative, offering incentives of up to RM2 million annually per eligible company. These include subsidies for space and utilities, access to advanced facilities, and talent development programs through the Penang Chip Design Academy. The Federal Government has also pledged RM50 million in additional support.

Five local companies—Filpal, Infinecs Lab, Silicon X, SkyeChip, and Sophic Automation—are the first to occupy the GBS TechSpace, benefiting from these incentives. Their involvement aligns with the National Semiconductor Strategy’s (NSS) goal of developing 10 Malaysian companies in semiconductor design and packaging.

Additionally, global industry leaders, including Alchip, AMD Global Services, Celestica, Microsoft, and Monolithic Power Systems, have established operations at the Penang IC Design & Digital Park. Chow emphasized that their presence would create spillover effects, fostering innovation and knowledge transfer to local startups.

Prime Minister Anwar described the initiative as transformative, propelling Malaysia into the front-end of the semiconductor value chain. “This is a proud moment for Malaysia as we step into the forefront of global technology innovation,” he remarked.

With over 40 IC design companies now based in Penang, the state is solidifying its status as a leader in semiconductor design and innovation.