Penang launches key semiconductor growth initiatives

GEORGE TOWN: Penang is establishing a Strategic Technology Fund with a state commitment of up to RM50 million to help local technology companies commercialise and scale globally.

Chief Minister Chow Kon Yeow announced the initiative today during the KL20 @Penang 2026 Silicon Surge panel session at the Penang Waterfront Convention Centre.

"The fund aims to anchor and encourage greater participation from venture capital, institutional investors, and the private sector.

"The effort will complement the proposed Penang Technology Financial Centre initiative to strengthen the state's financing ecosystem," he said.

Chow said, in addition, the state government would move forward with PSD@5KM+ Campus II to expand its integrated circuit design ecosystem.

He said with current incubation space at GBS TechSpace fully occupied by Batch 1 and 2 incubatees, the expansion would provide over 70,000 square feet of additional space by early next year, starting at GBS Mayang.

Applications for Batch 3 are now open.

Chow also revealed additional co-funding drawn from state and Economy Ministry allocations to deepen the PSD@5KM+ ecosystem.

"This funding will grant local companies better access to advanced semiconductor tools, specialised engineering and technical capabilities.

"The state's three-pronged strategy focuses on attracting global technology leaders, strengthening local technology capabilities and helping Malaysian firms commercialise IP.

"I want Penang and Malaysia to be known not only as a place where the world's semiconductors are made, but as a country where Malaysian companies design the chips, own the IP, build the technology, and take those products to the world," he added.