GEORGE TOWN (April 24): The Penang state government will develop an automation, test and equipment (ATE) campus in Batu Kawan to position the ATE sector as the next engine of Malaysia’s industrial transformation.
Penang Chief Minister Chow Kon Yeow said the state has committed 10 acres of land, worth about RM40 million, through the Penang Development Corp (PDC).
Spearheaded by the state’s investment promotion agency InvestPenang, the initiative will be carried out in two phases.
“In Phase 1, collaborative industry platforms such as field labs, training programmes and localisation pathways will be established to align with production needs,” he said at the launch held at the Olive Tree Hotel here on Friday. Also present were Entrepreneur Development and Cooperatives Minister Sim Chee Keong and InvestPenang chief executive officer Datuk Loo Lee Lian.
“Building on this foundation, Phase 2 will explore the development of a dedicated campus inspired by the Brainport Industries Campus. This campus will bring qualified suppliers together under shared standards, creating an integrated manufacturing ecosystem that global companies can trust.
“By deepening collaboration and local capabilities, Penang can lead advanced manufacturing in the region,” Chow added.
Chow said the platform would enable local ATE firms, multinational corporations (MNCs), and partners to co-develop, integrate and validate manufacturing solutions.
He added that global manufacturers could use the platform to move from pilot to scale within a single, controlled environment and trusted ecosystem, thereby reducing execution risks.
The state is working with the federal government to develop key enablers, especially training programmes and shared laboratories under the Penang ATE Campus.
“We have secured an RM50 million federal matching grant for the Penang Silicon Design @5km+ initiative and anticipate continued federal support for the Penang ATE Campus, which will further strengthen Malaysia’s ATE ecosystem,” Chow said.
Eleven memoranda of understanding (MOUs) were signed between MNCs and InvestPenang to drive pilot projects and localisation efforts.
The Penang ATE Capability Map was also unveiled at the event, highlighting local capabilities across semiconductor front-end, advanced packaging, conventional packaging, EMS/ODM, and medtech sectors.
The capability map supports localisation in line with the Malaysian Investment Development Authority’s New Incentive Framework.
At the launch, InvestPenang presented the ATE Policy Recommendation White Paper to the Ministry of Investment, Trade and Industry (MITI), outlining policy steps to strengthen Malaysia’s ATE ecosystem.
Over the past five decades, Malaysia has built a strong reputation in the global semiconductor industry, particularly in assembly, testing, and packaging (ATP), contributing about 13% of the global ATP market.