PENANG, 13 MAR 2026 – Penang State Government today announced the allocation of 10 acres of land for the development of the Penang Automation, Test and Equipment (ATE) Campus, as InvestPenang convened the second closed-door collaboration workshop bringing together 14 multinational corporations (MNCs) from the integrated device manufacturers (IDMs), electronics manufacturing services (EMS) and MedTech sectors and 18 local ATE companies to explore collaboration pathways ahead of the initiative’s targeted launch in Q2 2026.

Officiated by the Right Honourable Chief Minister of Penang, Mr. Chow Kon Yeow, this workshop provides a valuable platform for local ATE players to better understand industry needs and pave the way for localisation for MNCs, while accelerating the development of Penang’s ATE ecosystem under the Penang ATE Campus initiative.

To support the development of this initiative, the Penang State Government, through the Penang Development Corporation (PDC), has allocated 10 acres of land within the PDC Industrial Park, valued at approximately RM40 million, for the establishment of the Penang ATE Campus.

The state government is also seeking federal support to further accelerate the development of the Penang ATE Campus, in alignment with the National Semiconductor Strategy’s (NSS) focus on equipment manufacturing.

Spearheaded by InvestPenang, the Penang ATE Campus aims to accelerate innovation and reinforce Penang’s ATE ecosystem, with a focus on advanced packaging, IDM, EMS, MedTech and semiconductor equipment manufacturing. The initiative draws inspiration from the Brainport Industries Campus in Eindhoven, a high-tech manufacturing cluster that integrates industry collaboration, innovation and talent development within a single ecosystem.

Since October 2025, InvestPenang has conducted a series of engagement sessions with industry stakeholders to identify growth opportunities within the ecosystem.

Today’s workshop brought together 14 MNCs in the IDM, EMS and MedTech sectors – ams Osram, B.Braun, Entech Electronics, Escatec, Flex, Jabil, In-Tech Electronics, Micron, Motorola, MPS, Plexus, Renesas, Sandisk and Siemens, and 18 local ATE players – ABW Technologies, ACA, Aemulus, BioEnergy, ChinTech, Elsoft, Greatech, Ideal Vision, Mi Technovation, MMS, NSW Automation, Pentamaster, QES, Sophic Automation, THMY, TT Vision, ViTrox and Walta Engineering – showcasing their capabilities to potential partners – to explore potential collaboration. Among the attended MNCs, ams Osram, B. Braun and Sandisk presented their localisation opportunities.

The Chief Minister of Penang, Right Honorable Mr. Chow Kon Yeow said, “The key to its success lies in collaboration. When MNCs and local players work closely together — through knowledge sharing, supplier development and technology collaboration — it not only strengthens supply chain resilience but also ensures that local industries continue to grow alongside global industry leaders.”

According to Fortune Business Insights, the global automated test equipment market was valued at USD 5.41 billion in 2025 and is projected to reach USD 9.72 billion by 2034, growing at a CAGR of 7.10%, with Asia Pacific accounting for more than half of global market.

Penang currently hosts more than 20 local ATE companies, with at least 10 listed on Bursa Malaysia and a combined market capitalisation of approximately RM14 billion, supported by over 80 local precision engineering firms. Reflecting the strength of this ecosystem, the Machinery and Equipment sector has remained among the top three contributors to Penang’s approved manufacturing investments since 2020, recording RM25 billion between 2020 and 2025, representing over 40% of Malaysia’s total approved investments in the sector during the same period.

On 10th March 2026, MITI has indicated that they have identified 13 local companies as potential candidates for development towards the NSS’s “10+100 local champions” target. This target refers to developing 10 companies aiming for annual revenue exceeding USD1 billion (which is equivalent to RM3.9 billion) and 100 companies targeting at least RM1 billion in revenue. Notably, three of Penang local ATE companies have surpassed the RM500 million annual revenue in 2025.

Through initiatives such as the Penang ATE Campus, the state aims to deepen industry collaboration, strengthen supply chain resilience and create new growth opportunities for local companies within the global semiconductor industry in alignment with the NSS.

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About InvestPenang
InvestPenang is the Penang State Government’s principal agency for the promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realise its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), Global Business Services (GBS) Focus Group (promoting and developing digital economy), and Penang Silicon Design @5km+ (establishing a unique and interconnected ecosystem for IC design and technology enterprises). For more information, please visit https://investpenang.gov.my/ and follow InvestPenang’s social media channels: Facebook; LinkedIn; WhatsApp Channel and TikTok.

About Penang ATE Campus Initiative
The Penang Automation, Test and Equipment (ATE) Initiative, spearheaded by InvestPenang, is designed to accelerate innovation and strengthen the state’s ATE ecosystem, with a particular focus on advanced packaging, IDMs, EMS and MedTech and semiconductor equipment manufacturing. Aligned with the National Semiconductor Strategy, this initiative represents a transformative collaboration between government, academia and industry to drive technological advancement, deepen local capabilities and enhance supply chain resilience.

For media enquiries, please contact:
InvestPenang
Elaine Cheah/ Arief Ferdaus
elaine@investpenang.gov.my / arief@investpenang.gov.my
T: +604-646 8833

Penang ATE Campus Initiative
William Chen
william@investpenang.gov.my
T: +604-646 8833