THE Penang Silicon Research & Incubation Space, a pivotal element of the Penang Silicon Design @5km+ initiative, was officially launched today at GBS TechSpace in Bayan Lepas, marking another milestone in the state’s mission to lead Malaysia’s integrated circuit (IC) design landscape.
This newly launched facility joins two other major components already operational under the initiative, namely the Penang IC Design and Digital Park @Bayan Lepas and the Penang Chip Design Academy @PSDC.
Spearheaded by the Penang government, the Penang Silicon Design @5km+ initiative aims to strengthen the state’s position as a key player in the global semiconductor supply chain by creating a concentrated and interconnected ecosystem for IC design and technology enterprises within a 5km+ radius of the Bayan Lepas industrial hub.
During the official opening today, Chief Minister Chow Kon Yeow said the launch of this Penang Silicon Research & Incubation Space today marks Penang’s ambition and readiness to take on a bigger role in the global semiconductor industry.

“It also reaffirms Penang’s commitment to aligning with the National Semiconductor Strategy (NSS), which charts Malaysia’s goal to move up the value chain through higher value-added activities such as IC design.

“This Silicon Research and Incubation Space is envisioned as a one-stop centre designed to cultivate a vibrant community of next-generation AI-driven IC design thinkers, engineers, and entrepreneurs.
“It also provides access to high-spec server environments, cutting-edge lab facilities, and industry-standard Electronic Design Automation (EDA) tools and equipment, which are critical enablers for IC design and development.
“But it doesn’t stop there. The space is complemented by an integrated suite of technical consultations, expert mentorships, and collaborative development programmes, all designed to accelerate innovation and product readiness,” Chow said in his speech.
Also present were state executive councillors Datuk Seri Sundarajoo Somu, Jason H’ng Mooi Lye, Lim Siew Khim, Sungai Puyu assemblyman Phee Syn Tze, Komtar assemblyman Teh Lai Heng, Penang Development Corporation (PDC) chief executive officer Datuk Aziz Bakar and InvestPenang chief executive officer Datuk Loo Lee Lian.
Chow highlighted that Penang is already home to more than 45 local and international IC design companies, forming Malaysia’s largest IC design cluster.
“With the launch of this space, we aspire to nurture even more homegrown IC design champions and ultimately to realise the vision of producing ‘Made by Malaysia’ chips and thus reinforcing Penang’s position as the ‘Silicon Valley of the East’,” he added.
He emphasised that the Penang Silicon Design @5km+ initiative is more than just a development strategy as it represents a bold, integrated approach to connecting industry, government, and academia in building a holistic, end-to-end IC design ecosystem.
“This initiative goes beyond infrastructure; it is about creating a dynamic, collaborative environment that positions Penang as Malaysia’s hub for IC design and AI-driven innovation,” he concluded.
Story by Riadz Akmal
Pix by Siew Chia En
Video by Alissala Thian