GEORGE TOWN: Penang today unveiled plans to establish its own one million sq ft integrated circuit (IC) design and digital park at the Bayan Lepas Industrial Park.
The 42.5ha project consists two phases.
The development of the first phase is underway. It features two office buildings — GBS By The Sea and GBS TechSpace — totalling 350,000 sq ft, with an investment of RM347 million.
It is expected to be completed in the fourth quarter of this year.
The second phase, which involves 500,000 sq ft, introduces the establishment of a prominent structure, GBS TechnoPlex, at RM308 million.
The project is expected to be completed by 2027.
Chief Minister Chow Kon Yeow, in announcing the ambitious plan, said the development underscored Penang's commitment to fostering innovation, driving growth in key industries and attracting top-tier talent to the state.
"Construction for both phases commenced early last year. Once completed, the park will host high-impact initiatives spanning IC design, research and development (R&D), global business services (GBS), digital technology investments and a circular digital economy ecosystem.
"We strive to be at the forefront of the digital economy through this initiative," he said at the Penang Development Corp (PDC) here today.
Last week, Chow announced the intention of three new semiconductor companies to invest in Penang — China Wafer Level CSP Co (WLCSP), Ningbo SJ Electronics Co (SJE) and Wuxi AMTE Inc (AMTE).
His announcement came on the heels of his predecessor, Lim Guan Eng, asking him to explain how the state lost a multi-million ringgit IC design project to Selangor.
Selangor had recently announced that the state would build an IC design park in Bandar Puteri, Puchong, in July.
Tech-related companies, such as ARM Limited and Phison Malaysia had already committed to setting up operations in the park, touted to be the largest in Southeast Asia.
Lim had said that a postmortem should be conducted to determine how Penang missed the opportunity despite it being the leader in the sector.
According to Chow, the Penang government is formulating an incentive package for strategic investors keen on enhancing and complementing the park.
He said the incentives were designed to bolster Penang's current investment ecosystem.
Chow said the manufacturing and services sectors remained the state's twin engines of growth, noting that both sectors contributed 95 per cent of the state's total revenue.
"We are seeing an increasing demand from the digital economy sectors, particularly the IC design, R&D and GBS.
"We have garnered nearly RM20 billion of approved investments in the services sector over the past five years.
"Penang boasts a thriving ecosystem of over 200 Malaysia Digital Status companies.
"Moreover, we are witnessing the rise of third-party service providers, including IC design and knowledge-based solutions firms, alongside the established players in Penang," he added, adding that over the last three decades, Penang has nurtured more than 20 specialised IC design companies, featuring a strong presence from global leaders.