Silicon Island is expected to welcome its first factory in 2028, with the sale of industrial land at its 700-acre Green Tech Park scheduled to begin as early as the first quarter of 2027.

Chief Minister Chow Kon Yeow said the industrial park would focus on attracting high-value investments in semiconductors, automated test equipment (ATE), integrated circuit (IC) design and medical devices, positioning Penang as a green and sustainable technology hub.

He said reclamation works on Silicon Island had reached 500 acres as of October 2026, representing 39.4% of its 1,270-acre Phase One development. A 64.85-acre site had also been prepared for the Mutiara Line LRT depot.

Speaking when tabling the Penang Budget 2027 at the State Legislative Assembly, Chow said Silicon Island was expected to generate long-term economic benefits. As of September 30, 2026, a total of 4,531 contracts worth RM1.92 billion had been awarded to local contractors and businesses.

Beyond Silicon Island, the state is also strengthening its semiconductor ecosystem through initiatives such as the Malaysia Automation, Test and Equipment (ATE) Campus in Batu Kawan. The Federal Government has allocated RM25 million for the project, while Penang is contributing 10 acres of industrial land worth approximately RM40 million.

Penang’s chip design ecosystem has also expanded, growing from around 25 companies to more than 50, supported by the Penang Silicon Design @5KM+ initiative.

Meanwhile, the proposed Penang Technology Finance Centre (PTFC), backed by a RM100 million strategic investment partnership between the Federal and state governments, aims to strengthen technology financing and attract further investments.

Chow stressed that these developments must translate into quality employment, higher incomes and suitable housing for skilled workers. Rumah Bakat Madani developments in Bandar Cassia, Batu Kawan, and Lorong Tenggiri, Seberang Jaya, are among the initiatives aimed at providing accommodation for professionals and industrial workers.

Other strategic developments planned by the Penang Development Corporation include Penang International Logistics Aeropark, Batu Kawan Industrial Park 3, Bandar Cassia Technology Park and the Seberang Perai Tengah New Corridor.

Together, these initiatives are expected to strengthen Penang’s position as a major technology and manufacturing hub while creating new investment and employment opportunities across the state.