“Made by Malaysia” Chips Becoming Reality as Penang Launches Flagship Silicon Research & Incubation Space to Power Local IC Design Breakthroughs
Source: InvestPenang
Officiated by the Right Honourable Chief Minister of Penang, Mr. Chow Kon Yeow, the launch marks a strategic leap forward in the nation’s drive to empower local IC design companies enabling them to build, test, and scale next-generation chips proudly “Made by Malaysia” in Penang aligning with the National Semiconductor Strategy (NSS).
Strategically located at GBS TechSpace in Bayan Lepas, the 36,000 sq ft purpose-built space is tailored as a one-stop innovation centre for startups and growing local IC design companies. It 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.
One of the key highlights of today’s opening is the announcement by SkyeChip of two advanced chip technology solutions: HBM3E and Network-on-Chip (NoC). Proudly designed by Malaysian engineers in Penang, these innovations mark a major step forward in our semiconductor journey. HBM3E supports high-performance AI and cloud computing, while NoC improves chip efficiency for AI, smart devices, and vehicles. This milestone reflects our growing capability to lead in advanced chip design—and puts Malaysia firmly on the map of global semiconductor innovation. (Click here to view SkyeChip’s announcement video)
On top of that, Silicon X also announced that they are advancing the development of a homegrown proprietary chip in Malaysia, where the silicon is expected to be returned soon, with anticipation building for a successful power-on announcement.
Mr. Chow Kon Yeow, the Right Honourable Chief Minister of Penang, stated, “With the launch of this space, we aspire to nurture even more homegrown IC design champions and “Made by Malaysia” chips — reinforcing Penang’s position as the Silicon Valley of the East.”
In support of the PSD@5KM+ initiative, the Penang State Government has 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.
The five pioneering local IC design companies to benefit from the initiative, who are also the inaugural occupants of the incubation space include:
The Penang Silicon Research and Incubation facility is further strengthened by a dynamic consortium of world-class technology collaborators and strategic partners, providing access to global expertise, technologies, and partnerships to elevate Penang’s innovation ecosystem to international standards. This consortium includes industry leaders such as Aemulus, Cadence, CEDEC (USM), Contacthings, Experior, Globetronics, Inari, Keysight, NI Emerson, Oppstar, Siemens, SilTerra, Synopsys, and xFab, alongside government-linked agencies such as Cradle, CREST, MIMOS, PDC, and PSDC. This collaboration underscores a strong public-private partnership to developing a thriving IC design ecosystem in Penang.
Complementing Malaysia’s strategic partnership with Arm Holdings, which focuses on accelerating national IC design capabilities, particularly in AI-centric technologies, Penang stands to benefit significantly from this collaboration. It offers greater access to advanced IP, expanded talent development opportunities, and increased global visibility, which are in strong synergy with Penang’s vision to position itself as a premier regional hub for IC design.
Just a year ago, when the state announced the Penang IC Design & Digital Park in May 2024, the state was home to over 20 local and global IC design companies. Today, that number has more than doubled to over 45, positioning Penang as Malaysia’s largest and fastest-growing IC design cluster. The PSD@5KM+ initiative is now set to further expand this momentum and catalyse the emergence of the first generation of “Made by Malaysia” chips—designed, developed, and driven from Penang, underpinned by the state’s robust and rapidly maturing IC designecosystem.
