GEORGE TOWN, March 13 — The Penang state government has allocated 4.047 hectares of land valued at approximately RM40 million for the development of the Penang Automation, Test and Equipment (ATE) Campus, which will boost the state’s semiconductor ecosystem.
In a statement, InvestPenang said the land, located within the Penang Development Corporation (PDC) Industrial Park, is dedicated to supporting the growth of the ATE ecosystem in the state, with the initiative’s launch targeted for the second quarter of 2026.
Today’s announcement was made during the second closed-door collaboration workshop hosted by InvestPenang, which brought together 14 multinational corporations (MNCs) and 18 local ATE companies to explore localisation and partnership pathways.
Chief Minister Chow Kon Yeow, who officiated the workshop, said the initiative aims to reinforce Penang’s position in advanced packaging, integrated device manufacturers (IDM), electronics manufacturing services (EMS), and semiconductor equipment manufacturing.
“The key to its success lies in collaboration. When MNCs and local players work closely together through knowledge sharing, supplier development, and technology collaboration, it not only strengthens supply chain resilience but also ensures local industries grow alongside global leaders,” he said.
InvestPenang said the campus draws inspiration from the Brainport Industries Campus in Eindhoven, Netherlands, focusing on a high-tech cluster that integrates industry collaboration, innovation, and talent development.
The state government is also seeking federal support for the project, aligning it with the National Semiconductor Strategy’s (NSS) focus on equipment manufacturing.
According to the statement, Penang currently hosts over 20 local ATE companies, with at least 10 listed on Bursa Malaysia boasting a combined market capitalisation of approximately RM14 billion.
Reflecting the sector’s strength, the machinery and equipment segment has remained a top-three contributor to Penang’s approved manufacturing investments, recording RM25 billion between 2020 and 2025, accounting for over 40 per cent of Malaysia’s total approved investments in the sector during that period.
The statement also highlighted that, as of March 10, 2026, the Ministry of Investment, Trade and Industry (MITI) has identified 13 local companies as potential candidates for the NSS “10+100 local champions” target.
Notably, three of Penang’s local ATE companies surpassed RM500 million in annual revenue in 2025, positioning them well toward the goal of developing local champions with revenues exceeding RM1 billion. — Bernama
