KUALA LUMPUR (July 18): Automation and engineering firm 3REN Bhd (KL:3REN) has signed a deal with Invest-in-Penang Bhd to start an integrated circuit (IC) design project. Under the deal signed on Friday, Invest Penang will fund the project to help 3REN become a full semiconductor solutions provider, focusing on IC design and Internet of Things hardware for industry.

The project supports Penang’s goal to become a top IC design hub.

The deal, made under Penang Silicon Design @5km+ initiative, will see Invest Penang help 3REN’s unit Sophic Automation turn its IC designs into market-ready chips. Under the agreement, Invest Penang will provide financial support until May 13, 2028, by paying third-party suppliers for project needs.

As part of the deal, Sophic Automation must keep its headquarters in Penang for five years after the incentive period. Invest Penang can end the support if rules are broken or policies change.

“The incentive package is expected to offer opportunities to collaborate with local fabless IC design firms, EDA (electronic design automation) tool providers and academic institutions, further enhancing its access to IC design and development technologies,” the filing by 3REN read. 

Shares in 3REN settled half a sen or 1.79% higher at 27.5 sen on Friday, valuing the ACE Market-listed company at RM175.56 million. Year-to-date, shares in the company have dropped more than 30%