PENANG’s strong Automation, Test and Equipment (ATE) ecosystem has attracted significant investments in the machinery and equipment sector, says Chief Minister Chow Kon Yeow.
According to Chow, between 2020 and 2025, the state has recorded RM25 billion in approved manufacturing investments in the machinery and equipment sector, accounting for 40% of Malaysia’s total investments in this segment.
“This clearly reflects Penang’s significance as a key hub for ATE within Malaysia’s semiconductor industry.
“However, while Penang has built a strong base of ATE companies and ecosystem partners, greater collaboration across the ecosystem is needed to unlock its potential fully,” Chow said in his speech during the launch of Penang ATE Campus at the Olive Tree Hotel in Bayan Lepas today.
Hence, Chow said the Penang ATE Campus is therefore designed to address this gap.
“Through this platform, local ATE companies, multinational corporations (MNCs), and ecosystem partners will be able to collaborate more closely to co-develop, integrate, and validate solutions for real manufacturing use cases.
“This will allow global manufacturers to move from pilot to scale within a single, controlled environment and trusted ecosystem, which reduces execution risks,” he said.
Chow also explained that the development of the Penang ATE Campus will take place in two phases.
“In phase one, the focus will be on building the ecosystem by enabling co-development between MNCs and local ATE companies through shared environments such as field labs and training platforms, aligned with real production needs.
“In phase two, we will explore the development of a dedicated physical campus, inspired by successful international models such as the Brainport Industries Campus in Eindhoven.
“This campus will bring together qualified suppliers under shared production and qualification standards.
“Ultimately, the aim is to have Penang ATE Campus become a production capability system that MNCs can plug into with confidence,” said Chow.
To support this initiative, in February of this year, the Penang government announced its commitment to allocate 10 acres of land in Batu Kawan Industrial Park (BKIP), valued at approximately RM40 million, for the future development of the physical Penang ATE Campus in Phase Two through the Penang Development Corporation.
“However, infrastructure alone will not determine the success of this initiative. Its success will ultimately depend on continued collaboration between industry, government, and ecosystem partners.
“In this regard, a strong partnership with the Federal Government will also be essential,” he said.
Chow added that the state government also look forward to continued financial support from the Federal Government for the Penang ATE Campus to further strengthen Malaysia’s ATE ecosystem and contribute towards the aspiration of the National Semiconductor Strategy (NSS).
“I understand that the steering committee, led by InvestPenang chief executive officer Datuk Loo Lee Lian, will begin their first round of engagement with the Investment, Trade and Industry Ministry (Miti), Malaysian Investment Department Authority (Mida), and Finance Ministry (MoF) in May to further present the Penang ATE Campus initiative and explore avenues for federal support,” he said.
Chow further mentioned that by strengthening collaboration and building deeper local capabilities, the state government believes that Penang can continue to play a leading role in shaping the future of advanced manufacturing in the region.
“I wish Penang ATE Campus a huge success to accelerate the ATE development where local players come together to co-engineer the future of advanced manufacturing,” said Chow.
Meanwhile, Loo said the main objective of Penang ATE Campus is to strengthen collaboration, enhance global visibility, and attract investment and talent, thereby positioning Penang as a leading ATE hub and driving Malaysia’s industrial transformation.
“Spearheaded by the Penang government through InvestPenang, the launch reinforces Penang’s role as a key hub for ATE development, bringing stakeholders together to build domestic capabilities, accelerate partnerships, and enhance Malaysia’s global competitiveness,” she said.
Also present during the event today were Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong, Penang Trade and National Unity Committee chairman Goh Choon Aik, Penang Social Development, Welfare and Non-Islamic Religious Affairs Committee chairman Lim Siew Khim, Penang Local Government and Town & Country Planning Committee chairman Jason H’ng Mooi Lye, Sungai Puyu assemblyman Phee Syn Tze, Malaysia External Trade Development Corp (Matrade) chairman Datuk Seri Reezal Merican Naina Merican and Penang Mida Penang director Muhammad Ghaddaffi Sardar Mohamed.
Story by Riadz Akmal
Pix by Alissala Thian
Video by Siew Chia En