BAYAN LEPAS, July 2 — Malaysia marked a major milestone in its semiconductor journey with the official launch of the Penang Silicon Research and Incubation Space, a flagship facility under the Penang Silicon Design @5KM+ (PSD@5KM+) initiative.
Opened by Penang Chief Minister Chow Kon Yeow, the 36,000 sq ft innovation hub in Bayan Lepas is designed to nurture the next generation of “Made by Malaysia” chips. The event spotlighted breakthroughs from local players such as SkyeChip and Silicon X, both of which are leading a new wave of homegrown chip innovation.
SkyeChip, a high-performance computing IC design firm, unveiled two advanced chip technologies—HBM3E and Network-on-Chip (NoC)—developed entirely by Malaysian engineers. These chips are designed for AI, cloud computing, and smart devices, positioning Penang as a serious contender on the global semiconductor map.
Meanwhile, Silicon X announced it is nearing the power-on phase of its proprietary chip, another strong signal of Malaysia’s growing capabilities in the high-performance chip design space. The incubation space, housed at GBS TechSpace, is part of the government’s wider National Semiconductor Strategy. Supported by RM110 million in state and federal funding.
PSD@5KM+ offers subsidies for rentals, utilities, EDA tools, testing services, and talent development. Five pioneering companies—FILPAL, Infinecs Lab, Silicon X, SkyeChip, and Sophic Automation—are the first tenants, benefiting from high-end labs, technical mentorship, and access to a global tech consortium including Arm, Siemens, Synopsys, and Cadence.
Chief Minister Chow stated, “We are not just enabling chip design—we are enabling the next generation of globally competitive, ‘Made by Malaysia’ silicon. This is Penang’s moment to lead the future of semiconductor innovation in the region.” With over 45 IC design firms now based in the state—more than double the number since 2024—Penang is solidifying its status as Malaysia’s IC design capital.
SkyeChip’s rapid rise is also drawing investor interest. CEO Fong Swee Kiang revealed the company is on track for a potential IPO, with annual revenue growth of 30% and a net profit margin of 30%. The company, backed by Gobi Partners and focused on custom AI chips, serves a U.S.-based clientele and is seeking a valuation exceeding RM1 billion.
“An IPO was always part of our roadmap,” Fong shared, noting minimal concern about potential U.S. tariffs. With strong support from global partners and national agencies such as MIMOS, PDC, and PSDC, the PSD@5KM+ initiative is expected to propel Malaysia’s emergence as a leading semiconductor design hub.
Combined with Arm Holdings’ recent agreement to share IP with Malaysian firms, Penang is now poised to lead Southeast Asia in advanced chip design and innovation.
