Penang State Government has announced the allocation of 10 acres of land for the development of the Penang Automation, Test and Equipment (ATE) Campus.
InvestPenang said in a statement on last Friday that the land is valued at approximately MYR 40 million ($10.23 million).
The state government is also seeking federal support to further accelerate the development of the Penang ATE Campus, in alignment with the National Semiconductor Strategy’s (NSS) focus on equipment manufacturing.
Spearheaded by InvestPenang, the Penang ATE Campus aims to accelerate innovation and reinforce Penang’s ATE ecosystem, with a focus on advanced packaging, integrated device manufacturers (IDM), electronics manufacturing services (EMS), MedTech and semiconductor equipment manufacturing.
The initiative draws inspiration from the Brainport Industries Campus in Eindhoven, a high-tech manufacturing cluster that integrates industry collaboration, innovation and talent development within a single ecosystem.
Since October 2025, InvestPenang has conducted a series of engagement sessions with industry stakeholders to identify growth opportunities within the ecosystem.
The Chief Minister of Penang, Chow Kon Yeow said the key to the plan’s success lies in collaboration.
“When multinational corporations (MNCs) and local players work closely together — through knowledge sharing, supplier development and technology collaboration — it not only strengthens supply chain resilience but also ensures that local industries continue to grow alongside global industry leaders,” he added.
Cited Fortune Business Insights, the statement highlighted the global automated test equipment market was valued at $5.41 billion in 2025 and is projected to reach $9.72 billion by 2034, growing at a compound annual growth rate (CAGR) of 7.1 percent, with Asia Pacific accounting for more than half of global market.
Penang currently hosts more than 20 local ATE companies, with at least ten listed on Bursa Malaysia and a combined market capitalization of approximately MYR 14 billion ($3.58 billion), supported by over 80 local precision engineering firms.
Reflecting the strength of this ecosystem, the machinery and equipment sector has remained among the top three contributors to Penang’s approved manufacturing investments since 2020, recording MYR 25 billion ($6.39 billion) between 2020 and 2025, representing over 40 percent of Malaysia’s total approved investments in the sector during the same period.
On March 10, 2026, Ministry of Investment, Trade and Industry, Malaysia (MITI) has indicated that they have identified 13 local companies as potential candidates for development towards the NSS’s “10+100 local champions” target.
This target refers to developing 10 companies aiming for annual revenue exceeding $1 billion and 100 companies targeting at least MYR 1 billion ($260 million) in revenue.
Notably, three of Penang local ATE companies have surpassed the MYR 500 million ($127.84 million) annual revenue in 2025.
Through initiatives such as the Penang ATE Campus, the state aims to deepen industry collaboration, strengthen supply chain resilience and create new growth opportunities for local companies within the global semiconductor industry in alignment with the NSS, said the statement.
In a separate statement, InvestPenang said the Penang Automation, Test and Equipment (ATE) Campus has officially identified four key pillars to accelerate growth and strengthen the Penang’s ATE ecosystem, following a series of industry engagement sessions with key stakeholders since October 2025.
Executive leaders from Aemulus, Greatech, Pentamaster, Sophic Automation, TT Vision, Walta Engineering, and the Penang Skills Development Center (PSDC) have been appointed to serve on the initiative’s steering committee, with specific pillars lead by each member to drive implementation and sustain long-term impact.
The first pillar focuses on branding and policy recommendations, including the development of an industry positioning framework and localization policy proposals for the government.
The second pillar focuses on localization pathways, aiming at facilitating collaboration between multinational corporations (MNCs) and local ATE companies through structured engagement platforms such as industry workshops, capability mapping and business matching.
The third pillar explores the establishment of shared laboratory facilities to support collaboration, co-development and training.
The fourth pillar centers on training and skills development through structured training, reskilling and upskilling programs to support the ATE industry.
Through these collective efforts between industry, government and academia, the Penang ATE Campus initiative aims to further strengthen Penang’s ATE ecosystem, unlocking new opportunities for local ATE companies while reinforcing the state’s position as a key hub within the global semiconductor value chain.
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