PENANG has committed 10 acres of land, valued at RM40mil, in Batu Kawan for the development of the Automation, Test and Equipment (ATE) Campus, which will serve as a hub for both local and foreign companies in the sector.
Chief Minister Chow Kon Yeow described the collaboration as exciting, noting that the state, through the Penang Development Corporation (PDC), is supporting the initiative.
Chow emphasised that building local capabilities will be a gradual process.
“The question now is whether local players can meet these requirements. This will develop step by step,” he said.
He highlighted the experience of Penang’s local companies, some of which have been operating for 30 to 35 years, while others have around 20 years of experience.
“They can continue to grow further and support the ecosystem,” Chow added.
He underlined the government’s goal of fostering a stronger local role in industrialisation and manufacturing.
“Otherwise, we will forever be reliant on foreign capital alone,” he said, adding that foreign investment also benefits from local support, which remains Penang’s strength.
Chow explained that the initiative aims to unify the ATE subsector across the supply chain, hoping all local companies can work together to grow the sector.
Recalling earlier efforts, he pointed to the 2024 IC design initiative, which aimed to strengthen the full supply chain.
“With this, we hope to attract more investments and train talent over the next few years to fill the gaps, so our supply chain becomes more complete,” he said.
“We are now ready to introduce this initiative and create opportunities for local players,” he affirmed.
Meanwhile, InvestPenang chief executive officer Datuk Loo Lee Lian said the proposed 10-acre site in Batu Kawan is intended to house a future campus that will serve as a hub for the ATE ecosystem.
She said the campus would bring together local ATE companies and potentially foreign firms to collaborate with local organisations.
“It will serve as an innovation centre and collaboration centre for the ATE ecosystem,” she said.
Loo added that collaboration among industry players had already begun even before the construction of a physical campus.
“For example, the Penang Skills Development Centre (PSDC) has provided us with a room to house our lab, so we are using existing facilities first before planning the physical campus,” she said.
She said the initiative is expected to take two to three years before moving into a dedicated campus.
“In the meantime, we want to work together first and also test our collaboration model. This is a new initiative, and as we move along, we will learn what works and what is needed,” she said.
Loo also said the initiative would seek funding support from the federal government.
She said the team is currently working out the details, including funding requirements for a shared laboratory, training programmes, and collaboration costs between multinational companies and local firms.
“There may also be shared equipment costs, and we hope agencies such as the International Trade and Industry Ministry (MITI) or the Malaysian Investment Development Authority (MIDA) can help fund some of these expenses,” she said.
Loo said the team hopes to present its proposal to the Federal Government, including MIDA and Khazanah, by May or June once the funding requirements are finalised.
“This is similar to what we did previously for the IC design initiative. We will first complete our homework and prepare a detailed proposal before presenting it,” she said.
She added that the team is mindful of ensuring prudent use of funds and adopting the most optimal approach when implementing the initiative.
Story by Edmund Lee
Pix by Law Suun Ting
Video by Alissala Thian