Govt allocates RM25mil for national ATE campus in Penang

Putrajaya has committed RM25 million to establish a national automation, testing, and equipment (ATE) campus in Batu Kawan, Penang. This funding, part of the 13th Malaysia Plan, aims to develop local talent and support the growth of Malaysia's semiconductor industry.

Speaking at the KL20@Penang 2026 event, Economy Minister Akmal Nasir emphasized the need to transition beyond traditional manufacturing into advanced packaging while concurrently preparing local talent for the semiconductor sector.

Penang's Chief Minister Chow Kon Yeow confirmed that the state government has allocated land in Batu Kawan for the ATE campus and has allocated up to RM50 million to a strategic technology fund. This fund is designed to support promising firms and startups with global potential, addressing the critical concern of access to capital for companies aiming to scale up their operations.

Chow further highlighted that the state is in the process of developing a second campus under the Penang Silicon Design @5km+ ecosystem, with potential sites under consideration, including GBS @ Mayang. By early next year, Penang anticipates providing over 70,000 square feet of additional space to bolster local companies within the ecosystem.

Additionally, the third round of applications for firms to join the Penang Silicon Design @5km+ initiative is now open, as the state continues its efforts to identify and support promising Malaysian integrated circuit design companies.