GEORGE TOWN, Sept 28 — To attract and support more Integrated Circuit (IC) design players establishing and expanding their operations in Penang, the state government today launched incentive package schemes, offering a subsidy of up to RM2 million annually over three years.

Chief Minister Chow Kon Yeow said the incentives will be available to both Malaysia-based companies and foreign firms involved in the IC design industry.

"Through these incentives, we aim to continue attracting and supporting IC design players who will contribute to this transformative initiative.

"Additionally, with further support from the federal government, currently pending approval from the Ministry of Finance (MOF) in terms of funding, the state will be able to enhance and improve the incentive packages we offer,” he said at the soft launch of Penang Silicon Design @5km+ at GBS TechSpace in Bayan Lepas today.

Chow explained that the state is introducing the Penang Silicon Design @5km+ initiative to establish an interconnected ecosystem for IC design and technology enterprises, all within close proximity of the existing industrial park in Bayan Lepas.

He noted that the total cost of the Penang Silicon Design @5km+ project will be RM120 million over a five-year period, covering infrastructural development, talent development, software and equipment procurement and operational expenses.

The chief minister also pointed out that the Penang State Government has committed RM60 million to support the initiative and is seeking an additional RM60 million from the federal government as a 1:1 matching grant.

He said this funding is planned to span five years, with RM31.5 million submitted to the MOF via the Ministry of Investment, Trade and Industry (MITI) for inclusion in Budget 2025, while the remaining amount will be requested under the 13th Malaysia Plan.

Meanwhile, Chow also announced the formation of an Executive Council for the project, which he will chair as Penang Chief Minister.

The council will comprise State Secretary Datuk Zulkifli Long, state financial officer Datuk Zabidah Safar, Penang Development Corporation (PDC) chief executive officer (CEO) Datuk Aziz Bakar, and InvestPenang CEO Datuk Loo Lee Lian.

The Advisory Panel will include the CEO of InvestPenang and CEO of the Penang Skills Development Centre (PSDC) Dr Hari Narayanan, with members comprising representatives from academia and industry, such as AMD Global Services, the Collaborative Microelectronic Design Excellence Centre (CEDEC), Universiti Sains Malaysia, Intel Malaysia Design Centre, Oppstar, SkyeChip and UST Malaysia.

The Penang Silicon Design @5km+ initiative consists of three key major projects, namely Penang IC Design & Digital Park @Bayan Lepas, Penang Chip Design Academy @PSDC, and GBS TechSpace, a 36,000-square-foot state-of-the-art facility hosting the Silicon Research and Incubation Space.

InvestPenang, in a statement today, announced that the incentive package schemes include subsidies of up to 100 per cent for rent, utilities and parking at state-owned properties; up to 100 per cent subsidies for the use of equipment and tools at shared incubation spaces and stakeholder facilities; and talent development incentives offering up to 100 per cent subsidies through the Penang Chip Design Academy.

Penang currently boasts the highest concentration of IC design-related companies in the nation, with 28 local and foreign firms residing in the state. — Bernama