PENANG is stepping up efforts to connect local startups and integrated circuit (IC) design firms with global investors as part of a wider strategy to move further upstream in the semiconductor value chain.
At an industry event today, Chief Minister Chow Kon Yeow said Penang must capitalise on global semiconductor growth by strengthening its presence in IC design, which contributes 60% to the semiconductor value chain.
“For over five decades, Penang has been recognised as the Silicon Valley of the East, renowned for our backend semiconductor strengths.
“But aligning with the National Semiconductor Strategy, we must now move further upstream into IC design and innovation,” he said at the inaugural Lift-Off of PSD@5KM+ at the Iconic Marjorie Hotel today.
Chow said 12 Penang-based companies will pitch to venture capitalists, private equity firms, and multinational corporations at the event, reflecting investor confidence and the state’s growing role in global innovation.
“Penang already houses more than 45 IC design companies, supported by talent and infrastructure,” he added, citing AMD’s new 209,000 sq ft R&D facility in Bayan Lepas as proof of continued confidence.
With its established infrastructure and highly skilled workforce, Chow said Penang is positioning itself not only as a trusted manufacturing hub but also a centre of creativity, innovation and design talent.
He said the state also announced the creation of InnoChamps, a new sub-pillar under Silicon Research & Incubation @GBS Techspace.
The programme, under PSD@5KM+, will connect startup CEOs in IC design with experienced industry leaders. Mentorship appointments are set for September.
Chow said the initiative functions as a business-matching platform between startups, venture capitalists, multinationals and private equity firms, aimed at helping local companies scale globally.
“This is very meaningful for startups. Beyond incentives, they need collaboration with industry and academia. As a government agency, we are bringing all parties together on these platforms,” he added.
InvestPenang chief executive officer Datuk Loo Lee Lian said that industry players were faring well in the state, due to its established semiconductor ecosystem.
“It is encouraging to see Penang grow well in the sector,” she said.
Among those present were Penang Development Corporation (PDC) general manager Datuk Aziz Bakar, Sungai Puyu assemblyman Phee Syn Tze and other distinguished guests.
Story by Edmund Lee
Pix by Ahmad Adil Muhamad
Video by Siew Chia En