GEORGE TOWN: Penang recorded more than RM350 billion in electrical and electronics (E&E) exports in the first half of 2026 (1H 2026), an increase of more than 80 per cent compared with the same period last year.
Chief Minister Chow Kon Yeow said the strong export performance reflected surging global demand for semiconductor products and further reinforced Penang’s position as Malaysia’s E&E hub.
"Penang’s electrical and electronics exports consistently contributed more than 60 per cent to the nation's total E&E exports,” he said in his speech at the closing ceremony of the Netherlands-Southeast Asia Semiconductor Talent Programme 2026 at Universiti Sains Malaysia (USM) here, today.
Also present were Deputy Ambassador of the Netherlands to Malaysia Pieter Blusee and USM vice-chancellor Datuk Seri Dr Abdul Rahman Mohamed
Chow said Penang, widely recognised as the ‘Silicon Valley of the East’, contributes more than five per cent of global semiconductor sales.
He said the state’s strong semiconductor ecosystem has placed it in a strategic position to benefit from continued growth in the global semiconductor industry, which is expected to approach US$1 trillion (US$1=RM4.08) in annual sales this year.
However, Chow said the growth of Penang’s semiconductor and E&E sectors must be supported by a strong talent pipeline to meet rising industry demand.
Malaysia currently faces a shortage of skilled engineers, with industry estimates indicating that about 50,000 skilled engineers are needed to meet current demand, while universities produce only around 5,000 engineering graduates annually, he noted.
"Globally, our industry will need to add a million skilled workers by 2030, including more than 200,000 additional engineers here in Asia-Pacific alone,” he said.
Thus, the chief minister pointed out that initiatives such as the Netherlands-Southeast Asia Semiconductor Talent Programme are important in exposing young talents to the semiconductor value chain and encouraging them to pursue careers in the industry.
"I was briefed that this programme brought together selected young talents and experts from Southeast Asia and the Netherlands to explore the full semiconductor value chain, from chip design to innovation and collaboration,” he added.
The 10-day programme brought together 60 students from Indonesia, Malaysia, the Philippines, Singapore, and Thailand for cross-cultural learning, academic sessions and engagement with industry players. - Bernama
