- US$26m in state and federal support committed to PSD@5KM+ initiative
- Hub serves as a one-stop innovation centre for startups & local IC design firms
Malaysia’s semiconductor ambitions have reached a major milestone with the official opening of the Penang Silicon Research and Incubation Space, a purpose-built innovation hub under the Penang Silicon Design @5KM+ (PSD@5KM+) initiative.
In a statement, Invest Penang noted that the event also highlighted two key achievements by the hub’s tenants. First, SkyeChip unveiled advanced chip technologies proudly designed by Malaysian engineers in Penang. Second, Silicon X shared progress on the development of a proprietary homegrown chip—both underscoring Penang’s growing role in driving “Made by Malaysia” innovation in the semiconductor sector.
Officiated by the Chief Minister of Penang, Chow Kon Yeow, the launch marks a significant step in Malaysia’s efforts to empower local IC design companies—enabling them to build, test, and scale next-generation chips in alignment with the National Semiconductor Strategy.
Strategically located at GBS TechSpace in Bayan Lepas, the 36,000 sq ft facility serves as a one-stop innovation centre for startups and local IC design firms. It offers access to high-spec server environments, advanced laboratories, and industry-standard EDA tools and equipment. Tenants also benefit from technical consultations, expert mentorship, and collaborative development programmes.
A highlight of the event was SkyeChip’s announcement of two advanced chip technologies—HBM3E and Network-on-Chip (NoC)—designed in Penang. HBM3E supports high-performance AI and cloud computing, while NoC improves chip efficiency for AI, smart devices, and automotive applications, placing Malaysia on the global semiconductor map.
Silicon X also reported progress on its homegrown chip development, with expectations high for a successful power-on milestone once the chip is returned.
Chow Kon Yeow said: “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 PSD@5KM+, the Penang state government has committed US$14 million (RM60 million), with an additional US$12 million (RM50 million) in federal co-funding. Eligible local IC design companies may access subsidies to support operational expenses such as rent, utilities, MPW services, testing, and talent development. Invest Penang describes this as one of Malaysia’s most comprehensive IC design support packages.
The five pioneering companies housed in the incubation space are:
- FILPAL – developing AI-enhanced design solutions for wireless communication, radar, and satellite applications.
- Infinecs Lab – specialising in semiconductor IP and product development, particularly for power management ICs and silicon photonics.
- Silicon X – focused on intelligent systems and real-time data processing to support AI and automation.
- SkyeChip – a high-performance computing and AI IC design house.
- Sophic Automation – providing smart factory automation and IC design engineering solutions.
The incubation facility is further supported by a consortium of global technology collaborators and strategic partners, including Aemulus, Cadence, CEDEC (USM), Contacthings, Experior, Globetronics, Inari, Keysight, NI Emerson, Oppstar, Siemens, SilTerra, Synopsys, and xFab. Government-linked agencies such as Cradle, CREST, MIMOS, PDC, and PSDC are also actively involved—demonstrating a strong public-private partnership.
Invest Penang added that Penang is also set to benefit from Malaysia’s strategic partnership with Arm Holdings, which focuses on accelerating national IC design capabilities, particularly in AI-centric technologies. This collaboration provides access to advanced IP, talent development opportunities, and global visibility—aligning with Penang’s vision of becoming a premier regional IC design hub.
According to Invest Penang, since the announcement of the Penang IC Design & Digital Park in May 2024, the number of local and international IC design companies in the state has more than doubled from 20 to over 45, making Penang Malaysia’s largest and fastest-growing IC design cluster.
The PSD@5KM+ initiative is expected to sustain this momentum and catalyse the emergence of Malaysia’s first generation of chips—designed, developed, and driven from Penang.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)