Malaysia achieved a significant step in its semiconductor ambitions with the launch of the 36,000 sq ft Penang Silicon Research and Incubation Space under the PSD@5KM+ initiative. The facility serves as a comprehensive innovation hub for startups and local IC design companies, offering advanced labs, high-spec servers, industry-standard EDA tools, and mentorship, reinforcing Penang as the nation’s largest and fastest-growing IC design cluster and a center for “Made by Malaysia” chip innovation.
The PSD@5KM+ initiative is backed by MYR 60 million (USD 13.5 million) from the Penang State Government, with an additional MYR 50 million (USD 11.3 million) in federal co-funding. Eligible IC design firms gain access to subsidies covering operating expenses, Multi-Project Wafer services, testing, and talent development, representing one of Malaysia’s most comprehensive support packages for semiconductor innovation. The incubation space is now home to five pioneering local firms namely FILPAL, Infinecs Lab, Silicon X, SkyeChip, and Sophic Automation, each specializing in AI-enhanced IC solutions, high-performance computing, and automation, positioning them to contribute to Malaysia’s National Semiconductor Strategy (NSS) and the country’s AI-centric semiconductor ambitions. The launch spotlighted two significant achievements: SkyeChip unveiled HBM3E and Network-on-Chip (NoC) technologies designed by Malaysian engineers, while Silicon X advanced the development of a homegrown proprietary chip, signaling Penang’s growing role as a regional hub for cutting-edge semiconductor design.
The facility is further strengthened by a consortium of global technology collaborators, including Cadence, Keysight, Siemens, Synopsys, and government-linked agencies such as Cradle, Collaborative Research in Engineering, Science & Technology (CREST), MIMOS, and Penang Skills Development Centre (PSDC), ensuring access to international expertise, technologies, and partnerships. Complementing Malaysia’s strategic partnership with Arm Holdings, the initiative accelerates local IC design capabilities while expanding talent development and global visibility. Since the announcement of the Penang IC Design & Digital Park in May 2024, the number of local and global IC design companies in Penang has more than doubled to over 45, reinforcing Penang as Malaysia’s largest and fastest-growing IC design cluster.
(Sources: Invest Penang; The Edge Malaysia)
