Penang Chief Minister Chow Kon Yeow.
GEORGE TOWN: Penang has achieved another technological milestone with the creation of Malaysia’s first locally designed semiconductor chip, a Field Programmable Gate Array (FPGA) developed by Penang-based Silicon X, with applications spanning artificial intelligence (AI), automotive systems and advanced LED display technologies.
The breakthrough, accomplished under the Penang Silicon Design @5km+ (PSD@5KM+) initiative, marks the first time a Malaysian-designed chip has been successfully powered on.
It also positions Silicon X among South-East Asia’s first FPGA product companies, reinforcing Penang’s standing as the country’s silicon-design hub.
Chief Minister Chow Kon Yeow said the achievement demonstrated Penang’s capability to move beyond back-end manufacturing into high-value chip design and innovation, strengthening the state’s role in the global semiconductor ecosystem.
He said Penang was proud to host innovators such as Silicon X, who were realising the aspiration to create the first generation of “Made by Malaysia” chips – designed, developed and driven from Penang.
“This showed Penang’s readiness to support high-end innovation while strengthening its role in the global semiconductor value chain, in line with the National Semiconductor Strategy and the New Industrial Master Plan 2030 (NIMP 2030),” said Chow at a press conference at Komtar yesterday.
Silicon X managing director Ng Meng Wah said the company’s first FPGA chip would serve a wide range of industries, particularly in AI applications, automotive electronics and digital-display systems such as smart billboards and large-format LED screens.
He said Silicon X was already in advanced discussions with potential customers from Japan, China and Malaysia, with mass-production arrangements to follow once commercial deals were finalised.
“A typical FPGA life cycle of about eight years, the company expects revenue of between RM200mil and RM300mil from the first product alone,” he said.
He added that Silicon X was already developing its second-generation chip and aimed to build a continuous pipeline of Malaysian-designed semiconductors that could compete globally.
An FPGA chip allows post-manufacturing reconfiguration for different functions and is widely used in smart mobility, robotics, industrial automation and AI-driven systems.
The successful design and power-on mark Malaysia’s entry into a field long dominated by international giants, proving that local engineers can produce world-class semiconductor products.
The PSD@5KM+ initiative, launched last year and spearheaded by InvestPenang, brings together government, academia and industry to cultivate Malaysia’s chip-design ecosystem.
It comprises three main components, the Penang IC Design and Digital Park, the Penang Chip Design Academy and the Penang Silicon Research and Incubation Space. Chow said PSD@5KM+ was now welcoming its second batch of incubatees – Tenasic Technology and Channel Microsystems – both local companies specialising in high-efficiency semiconductor design.
Tenasic Technology provides custom Application-Specific Integrated Circuit and System-on-Chip solutions with embedded software, while Channel Microsystems focuses on high-efficiency radio-frequency-to-direct-current energy-harvesting chips using low-cost CMOS (complementary metal-oxide-semiconductor) processes.
Both companies will receive state support covering rental, utilities, wafer testing and talent development.
“With the right platform and support, Penang could create home-grown semiconductor products of global significance.
“The PSD@5KM+ programme would continue to nurture early-stage startups and accelerate their growth within three to five years, positioning Penang as the strategic hub for the next generation of IC-design companies.”
He also expressed appreciation to the Economy Ministry and the Investment, Trade and Industry Ministry for their continued support in advancing Penang’s semiconductor ambitions.
“This historic first proved Penang’s innovation ecosystem was thriving and capable of delivering results of international importance,” added Chow.
