THE leader of RISC-V technology and ecosystem development in China, StarFive Technology, is expanding its research and development (R&D) footprint in Penang.
Established in May last year, StarFive Technology Malaysia is now based in GBS@Mayang, Penang.
Chief Minister Chow Kon Yeow was pleased to witness StarFive Technology’s expansion plan in Penang, just after nine months from its establishment in the state.
StarFive Technology Malaysia vice-president and general manager Ong Chin Hu said StarFive Technology would continue to invest an additional RM250 million to expand StarFive Technology Malaysia design centre as a world-class innovation hub over the next five years.
“I would like to take this opportunity to thank the Penang government, InvestPenang, Malaysia Digital Economy Corporation (MDEC), Penang Development Corporation (PDC) for the support in successfully setting up our first Southeast Asia StarFive Technology office in Penang,” Ong said in his speech, announcing the establishment of StarFive Technology’s first Southeast Asia design centre in Penang.
The investment announcement ceremony was held at E&O Hotel today.
Ong mentioned that talent availability was the key factor in the company’s decision to expand in Penang.
“Penang is a very unique state and is known as the Silicon Valley of the East. Penang and Malaysia have the most concentrated integrated circuit (IC) design and software development engineers in Southeast Asia.
“That was the reason why Penang was chosen as the location for us to invest. The key reason was talent availability in this area.
“We plan to grow our team over the next five years. Majority of our funding (investment) will be on human capital development,” he said.
Chow congratulated StarFive Technology Malaysia for its plan to expand in Penang over the next five years.
“My heartiest congratulations for the milestone achieved.
“Penang constantly places itself at the forefront of innovation, underpinned by 50 years of sustained excellence.
“Our conducive environment has undoubtedly created an avenue for companies and the people to progress.
“One of our top priorities is to attract companies that focus on R&D-intensive activities.
“We aim at enabling the state to be positioned as a global innovation hub,” Chow said in his speech.
He stated that manufacturing and services sectors were the two twin engines of growth for Penang.
“In the year 2020, the manufacturing industry contributed 45% of the state’s GDP while the services industry made up close to 50% of the total amount.
“Meanwhile on trade performance, Penang’s exports climbed 14% year-on-year in 2021, reaching its all-time high of RM354 billion.
“The achievement cemented the state’s position as the nation’s highest contributor in exports. Notably, Penang’s exports are dominated by the electrical and electronic (E&E) products,” Chow said, adding that Penang accounted for over 5% of the global semiconductor sales.
Chow said that Penang is dubbed as the talent magnet in the northern region.
“We are proud of our established pool of talents that has expanded beyond mere processing, to include research, design and development.
“The state, via InvestPenang and PDC, remains committed to provide continuous support and facilitation for investors here.
“We will continue to spearhead the development of a sustainable ecosystem, proven by our decades of industrial excellence and quality workforce,” he said.
Datuk Seri Lee Kah Choon, who is the special investment adviser to the Penang Chief Minister, said Penang would be celebrating its golden jubilee of industrialisation this year.
“We have developed quite a strong infrastructure, as much as the E&E industry is concerned, over the past 50 years.
“For the past 50 years, we have developed the ‘hardware’. Going forward, we are moving towards the development of the ‘hardware and software’ to build a new future for Penang.
“The IC design is critical for us to move to the ‘softer part of the hardware’ that we have,” he said.
Chinese Consul General in Penang Lu Shiwei said the Covid-19 pandemic had not stopped Chinese enterprises from investing in the consular district.
“Last year, the Chinese enterprises have sought the Chinese Consulate General in Penang, seeking consultations about investment environment to make their investment plans.
“It is good to note that StarFive Technology completed the implementation and operation in Penang, entirely by means of online communication,” Lu said.
He said that Penang is an important economic and trade centre in the northern region of Malaysia.
“The state is committed to the development of the Fourth Industrial Revolution (IR4.0). Penang is actively promoting digitalisation in its economic and social sectors to imbue the state with more vitality and dynamism,” Lu said.
He believed that StarFive Technology would be able to fully experience the charm of the Silicon Valley of the East from its decision to invest in Penang.
After the speeches, StarFive Technology and PDC exchanged a signed tenancy agreement.
Also present were PDC chief executive officer Aziz Bakar, and InvestPenang chief executive officer Datuk Loo Lee Lian.
Story by Christopher Tan
Pix by Alissala Thian
Video by Law Suun Ting