PENANG marked another major milestone in its semiconductor journey today with the official opening of the Shared Lab for Integrated Circuit (IC) Design Validation and Characterisation, reinforcing the state’s ambition to become a regional hub for high-value chip design under the Penang Silicon Design @5KM+ (PSD@5KM+) initiative.
The purpose-built facility, driven by InvestPenang, provides IC design companies with access to advanced testing equipment, specialised technical support and an industry-standard electrostatic discharge (ESD) environment, enabling post-silicon validation and characterisation critical to bringing chip innovations to market.
Chief Minister Chow Kon Yeow said the Shared Lab symbolises Penang’s transition from manufacturing excellence to innovation leadership.
“This Shared Lab stands as a powerful symbol of Penang’s ambition.
“It is a place where ideas move beyond the drawing board, where innovation is tested, refined, and translated into real silicon, where chips are brought to life,” he said at the launch.
He added that PSD@5KM+ has evolved into a comprehensive, end-to-end IC design ecosystem, connecting partners across the entire value chain, from concept and development to validation and commercialisation, enabling startups to innovate faster, scale with confidence and compete globally.
The facility is accessible not only to incubatees within the Silicon Design and Incubation Space, but also to IC design companies across Penang, underscoring the state’s commitment to shared infrastructure and ecosystem-wide growth.
Since its launch in December 2024, PSD@5KM+ has delivered strong results, including the creation of over 9,500 high-value jobs, the expansion of Penang’s IC design players from 25 to more than 50 companies, and the training of over 400 talents through the Penang Chip Design Academy.
Notably, Malaysia’s first FPGA chip, alongside advanced HBM3E and Network-on-Chip technologies, was developed by Penang-based engineers.
Chow also highlighted Penang’s strong economic fundamentals, citing Department of Statistics Malaysia figures showing the state contributed 40.1 per cent, or RM61.3 billion, of the nation’s total exports in December 2025.
“This outstanding performance reflects sustained global confidence in Penang’s manufacturing excellence, particularly in high-value electrical and electronics sectors, and affirms the relevance of initiatives such as PSD@5KM+,” he said.
At the event, PSD@5KM+ onboarded its second batch of technology collaborators, Oppstar Technology, X-FAB Sarawak, Contacthings and ElectroRent, bringing the total number of collaborators to 18.
The partnerships expand capabilities across advanced tape-out services, diverse foundry process nodes and robust post-silicon validation infrastructure.
Contacthings and ElectroRent, together with Keysight and MIMOS, were also announced as key partners of the Shared Lab, contributing critical expertise and resources to uphold technical excellence.
InvestPenang chief executive officer Datuk Loo Lee Lian said the initiative reflects a deliberate, ecosystem-led approach to building Penang’s IC design capabilities.
“PSD@5KM+ brings together infrastructure, talent development, funding facilitation and strategic partnerships within a comprehensive and interconnected framework.
“With the Shared Lab and new collaborators, we are strengthening Penang’s position as a fast-growing IC design hub while enabling startups to reduce time-to-market and scale with greater confidence,” she said.
Chow reaffirmed the state government’s commitment to advancing the semiconductor ecosystem through continued investment in infrastructure, talent development and close collaboration with industry, academia and the federal government.
“As we move forward, let us do so with ambition, unity and conviction, to shape Penang’s future and contribute meaningfully to the global semiconductor landscape.
Together, we can realise our vision of producing the first generation of a ‘Made by Malaysia’ chip, designed, developed and driven from Penang,” he said.
Story by Kevin Vimal
Pix by Muhammad Iqbal Hamdan
Video by Siew Chia En