Penang targets 70,000 sq ft of silicon design space by early 2027 for Campus II

Penang expects about 70,000 sq ft of additional space for its Penang Silicon Design @5KM+ initiative to become available by early 2027 as it moves ahead with Campus II. GBS@Mayang in Bayan Baru is one location identified for the new campus, though the state has not confirmed if it will accommodate a

PETALING JAYA (Sept 28): Penang expects about 70,000 sq ft of additional space for its Penang Silicon Design @5KM+ (PSD@5KM+) initiative to become available by early 2027, as the state moves ahead with Campus II.

Invest Penang said in a press statement on Friday (Sept 25) that Chief Minister Chow Kon Yeow had said the existing incubation space at GBS TechSpace is fully occupied by seven companies from the programme's first two batches. Applications for Batch 3 are now open.

GBS@Mayang in Bayan Baru is one location identified for Campus II. The state has not confirmed whether GBS@Mayang will accommodate all of the additional space. GBS@Mayang is a four-storey office building spanning about 127,000 sq ft. State reporting in October 2024 named StarFive, Bitsilica and Synapse Design among the building's tenants, illustrating the IC design presence cited by Chow.

The existing PSD@5KM+ incubation facility occupies 36,000 sq ft at GBS TechSpace in Bayan Lepas. Opened in July 2025, it provides workspace, laboratories, electronic design automation tools and technical support for IC design companies.

Speaking at KL20@Penang 2026 at the Penang Waterfront Convention Centre, Chow said the state would provide additional co-funding for PSD@5KM+ from existing state and Economy Ministry allocations for the initiative. The support is intended to help companies access advanced semiconductor tools, infrastructure and technical capabilities, and support engineering collaboration. No separate amount was announced.

Penang previously committed RM60 million to PSD@5KM+, alongside RM50 million in federal co-funding. The initiative comprises the Penang IC Design and Digital Park, Penang Chip Design Academy and Silicon Research and Incubation Space at GBS TechSpace.

Separately, the Penang executive council has agreed to establish the Penang Strategic Technology Fund, with a state commitment of up to RM50 million. The fund is intended to support technology companies with global growth potential and attract venture capital, institutional and strategic investors, and private-sector participation. Its proposed manager, investment structure and launch date have not been disclosed. This commitment is separate from the existing PSD@5KM+ funding.

At the same event, Economy Minister Akmal Nasrullah Mohd Nasir announced RM25 million in federal funding under the 13th Malaysia Plan for the National Automation, Testing and Equipment Campus in Batu Kawan. Penang launched its ATE Campus initiative in April and had allocated 10 acres of land valued at about RM40 million for it. The land value is not a construction budget; the project's total development cost and timetable have not been disclosed.