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PENANG, 5 NOVEMBER 2025 – Penang Silicon Design @5KM+ (PSD@5KM+) proudly welcomes its second batch of incubatees — comprising two local IC design companies — into the Silicon Research & Incubation Space @GBS TechSpace.

The two new incubatees are:

1. Channel Microsystems – develops High Efficiency Radio Frequency-to-Direct Current (RF-to-DC) Energy Harvester built on low-cost Complementary Metal-Oxide-Semiconductor (CMOS) technology.
2. Tenasic Technology – specialises in IC design and has proven high volume production capabilities to deliver end-to-end solutions in custom Application-Specific Integrated Circuit (ASIC), System on a Chip (SoC), Intellectual Property (IP), and embedded software.

These companies will receive similar support as the inaugural batch, including access to subsidies to support operating expenses such as rental, utilities, Multi-Project Wafer (MPW) services, testing, and talent development. To date, more than RM5 million has been awarded to the first batch of recipients, demonstrating strong early momentum and the government’s commitment to nurturing Malaysia’s IC
design sector.

With these two new additions, the PSD@5KM+ now hosts a total of seven local IC design companies, underscoring substantial progress toward the National Semiconductor Strategy (NSS) target of establishing at least ten Malaysian companies specialising in IC design. This milestone reaffirms Penang’s position as the driving force of Malaysia’s IC design ecosystem and a key enabler of the nation’s semiconductor ambitions.

The state’s journey in IC design began over 30 years ago. Since then, Penang has steadily expanded its capabilities, nurturing a vibrant network of local and global design players.

Today, with the establishment of the PSD@5KM+ initiative, Penang stands out as the only state in Malaysia offering a unique and interconnected ecosystem for IC design and technology — from pre- silicon to post-silicon including packaging, post silicon validation and ready for New Product Introduction all within a close proximity of 5km+.

With the highest concentration of IC design companies in the country, Penang continues to attract both homegrown innovators and multinational leaders, cementing its reputation as Malaysia’s IC design powerhouse and a strategic node in the global semiconductor supply chain.

Mr. Chow Kon Yeow, the Right Honourable Chief Minister of Penang, stated, “With the right platform and support, Penang can create home-grown semiconductor products of global significance and PSD@5KM+ is instrumental in realising this vision. I look forward to seeing stronger advancements in IC design through the PSD@5KM+ initiative, positioning Penang as Malaysia’s leading IC design hub.”

He added, “I would also like to express my sincere appreciation to the Federal Government, especially the Ministry of Economy and the Ministry of Investment, Trade and Industry (MITI), for their unwavering support and confidence in Penang’s capabilities. This trust enables us to continue strengthening Malaysia’s semiconductor ecosystem and to advance our shared goal of driving innovation, talent, and technology for the nation’s future.”

Moving forward, PSD@5KM+ remains committed to nurturing more early-stage startups and accelerating their growth within three to five years — positioning Penang as the strategic hub for developing the next generation of IC design companies. Through these concerted efforts, Penang continues to advance Malaysia’s National Semiconductor Strategy — propelling the nation further up the global semiconductor value chain and solidifying its standing as a hub for innovation, talent, and high-value technology.

END

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 Silicon Design @5km+” Initiative
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 https://investpenang.gov.my/.

About Channel Microsystems
Channel Microsystems is a trailblazing Malaysian semiconductor startup spearheading the development of a High Efficiency RF-to-DC Energy Harvester built on low-cost CMOS technology, marking the creation of the first Made by Malaysia integrated circuit that enables battery-less, ultra-low-power IoT devices for BLE beacons, smart buildings and industrial sensors applications. Beyond product innovation, Channel is committed to build local semiconductor talent and strengthening Malaysia’s deep tech ecosystem. Through its cutting-edge IC design services and R&D excellence, Channel is positioning Malaysia as a global contender in next generation chip innovation.

About Tenasic Technology
Tenasic Technology is a leading Malaysia-based Fabless IC design company specializing in System-on-Chip (SoC), customized IP, and embedded software solutions. With a proven track record in high-volume production, Tenasic has successfully delivered turnkey SoC projects across key market segments, including IoT, edge computing, client devices, and data centers.

For media enquiries, please contact:

InvestPenang
Elaine Cheah / Arief Ferdaus
elaine@investpenang.gov.my / arief@investpenang.gov.my
T: +604-646 8833

“Penang Silicon Design @5km+” Initiative
Tun Qurratul Ain / Ong Mee Choo
ain@investpenang.gov.my / meechoo@investpenang.gov.my
T: +604-646 8833

Channel Microsystems
Balasubramaniam Shammugasamy
bala@channelmicrosystems.com
T: +6012-2633254

Tenasic Technology
Tenasic Business Development
sales@tenasictech.com
T:+604-6856868