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Leveraging on Penang’s manufacturing excellence, it is deepening its root in the areas that required strong engineering expertise for research, design and development activities. In New Industrial Master Plan 2030 launched by Ministry of Investment, Trade and Industry (MITI) in 2023, and the National Semiconductor Strategy (NSS) launched by the Prime Minister of Malaysia in 2024, Malaysia is looking to expand to high value-added activities in the value chain such as Integrated Circuit (IC) design. IC design includes design of both physical IC and associated software.

Penang is home to foreign IC design centre, such as Intel and UST, with the emergence of local and foreign players in this field, Penang envision to be a regional hub for IC and IC test design in the near future.

The “Penang Silicon Design @5km+” initiative was launched by Penang State Government, through its lead agency, InvestPenang. Aligning with National Semiconductor Strategy, this initiative is a transformative collaboration between government, academia and industry, aims to drive innovation, accelerate the AI revolution and position Malaysia as a leading global force to provide a complete and end-to-end solution. The “Penang Silicon Design @5km+” initiative consists of three key components: (1) Penang IC Design & Digital Park @Bayan Lepas; (2) Penang Chip Design Academy @PSDC; and (3) Silicon Research & Incubation Space @GBS TechSpace. For more information, please visit here.