The Penang government will proceed with the development of Penang Silicon Design @5km+ (PSD@5KM+) Campus II, following the full occupancy of its first campus less than two years after its launch.

Chief Minister Chow Kon Yeow said PSD@5KM+ Campus I, established under Batches 1 and 2 at GBS TechSpace, is currently occupied by seven incubatees. The state is now exploring potential locations for Campus II, with GBS@Mayang in Bayan Baru identified as one possible site.

According to Chow, GBS@Mayang already houses several integrated circuit (IC) design companies, providing an existing cluster that could support the expansion of Penang’s silicon design ecosystem. Further details on the location and development of Campus II are expected to be announced later.

Speaking at the Shaping Malaysia’s Next Semiconductor Chapter forum held in conjunction with KL20@Penang 2026 at the Penang Waterfront Convention Centre (PWCC), Chow said the state would also provide additional core funding to strengthen local technology companies.

The funding is intended to help companies gain access to advanced semiconductor tools, infrastructure and technical capabilities, while supporting strategic partnerships, specialised engineering and technology collaboration. The broader objective is to help companies move from technology development towards commercialisation and eventually scale their businesses.

Chow also announced that the Penang state executive council had agreed to establish a Strategic Technology Fund, with a state government commitment of up to RM50 million. The fund is intended to support local technology companies and encourage greater participation from venture capitalists, institutional investors, strategic investors and the private sector.

He said the RM50 million commitment was intended as an anchor for further investment, with the state hoping the Federal Government and private investors would also contribute to expanding the fund.

Chow said sustained efforts over the next five years could help position Penang and Malaysia beyond semiconductor manufacturing, with greater emphasis on chip design, intellectual property ownership, technology development and taking locally developed products to global markets.

Separately, Economy Minister Akmal Nasrullah Mohd Nasir announced that a Malaysia Advanced Testing Equipment (ATE) Campus will also be established in Penang, supported by RM25 million in approved Federal Government funding.

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