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PENANG, 27 FEB 2026 – InvestPenang yesterday organised a closed-door Advanced Packaging & Penang Automation, Test and Equipment (ATE) Campus Collaboration Workshop, bringing together nine multinational corporations (MNCs) in the advanced packaging sector – Intel, Microsoft, TF AMD, ASE, Analog Devices, AT&S, Chipbond, Wafertek and Inari Amertron, together with twelve pre-qualified local ATE companies to explore potential collaboration opportunities.

The workshop provided clarity on the participating MNCs’ advanced packaging requirements and localisation pathways, while facilitating structured engagement between these global industry leaders and Penang-based ATE players. The session forms part of the broader Penang ATE Campus initiative, which is scheduled to launch in the coming months.

Penang ATE Campus
Spearheaded by InvestPenang, the Penang ATE Campus aims to accelerate innovation and reinforce Penang’s ATE ecosystem, with a focus on advanced packaging, OSAT, integrated device manufacturers (IDMs), electronics manufacturing services (EMS) and MedTech.

“The Penang ATE Campus represents a strategic state initiative in strengthening Malaysia’s semiconductor ecosystem. By aligning local automation and test capabilities with multinational requirements, we are accelerating localisation, reinforcing supply chain resilience and enabling our homegrown ATE companies to move up the value chain in line with the National Semiconductor Strategy (NSS),” said the Right Honourable Chief Minister of Penang, Mr. Chow Kon Yeow.

Since October 2025, InvestPenang has conducted multiple engagement sessions with local ATE companies to identify growth accelerants within the ecosystem. As a result of these engagements, four key pillars were established for the Penang ATE Campus – (1) ATE industry scope, branding and policy recommendation; (2) Localisation pathways; (3) Shared lab; and (4) Training and skill development. These pillars will be developed with active participation from local ATE leaders, including Aemulus, Greatech, Pentamaster, Sophic Automation, TT Vision and Walta Engineering, along with Penang Skills Development Center (PSDC) to ensure industry relevance and long-term sustainability.

At yesterday’s closed-door Advanced Packaging & ATE Campus Collaboration Workshop, insights on semiconductor advanced packaging technical requirements and localisation opportunities were shared, followed by pitching sessions by twelve local ATE companies  – ABW Technologies, Aemulus, ChinTech, Ideal Vision, Mi Equipment, NSW Automation, Pentamaster, QES, Sophic Automation, Sysmech, TT Vision, ViTrox and Walta Engineering which have gone through the pre-qualification assessment based on the criteria by the MNCs, and expressed their interest to meet the requirements. The session concluded with focused discussions on potential collaboration pathways.

ATE Outlook
ATE capabilities are increasingly critical as semiconductor manufacturing becomes more complex and precision-driven. Reliable automation and high-accuracy testing systems are essential to ensure quality, improve yield and accelerate time-to-market.

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 demand.

Since 2020, the Machinery & Equipment sector has consistently ranked among the top three contributors to Penang’s approved manufacturing investments, recording a total of RM23 billion from 2020 to September 2025. This represents more than 40% of Malaysia’s total approved manufacturing investments in the Machinery & Equipment sector during the same period.

Yesterday’s workshop marks a key milestone in the establishment of the Penang ATE Campus. As the industry shifts towards higher integration, greater complexity and accelerated localisation, the Penang ATE Campus will play a pivotal role in strengthening domestic automation, test and equipment capabilities to support next-generation semiconductor manufacturing. By bridging multinational requirements with local expertise, the initiative is driving higher value creation, enhancing supply chain resilience and positioning Malaysia at the forefront of the global semiconductor value chain.

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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, OSAT, IDMs, EMS and MedTech. 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: +604-646 883

Penang ATE Campus Initiative
William Chen
william@investpenang.gov.my
T: +604-646 883