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Malaysia allocates RM25 million for Penang automation and testing campus

The government has committed RM25 million to establish a specialized campus in Penang focused on automation, testing and equipment solutions. The facility is expected to strengthen the state's position in the semiconductor industry.

LSN Malaysia · 24 September 2026

Malaysia allocates RM25 million for Penang automation and testing campus

The allocation will support the development of a dedicated campus aimed at advancing automation, testing and equipment (ATE) capabilities in Penang, a key hub for Malaysia's semiconductor manufacturing sector. Minister Akmal Nasir announced the funding, emphasizing the campus's strategic role in bolstering technological innovation within the state.

The facility is designed to foster the growth of automation and testing solutions, addressing critical needs within the semiconductor supply chain. By establishing specialized infrastructure and expertise in this domain, the campus is expected to enhance competitiveness and attract investment in advanced manufacturing technologies.

Penang has long been recognized as a significant player in Malaysia's electronics and semiconductor industries. The new campus represents a targeted investment in high-value technological capabilities that can support local manufacturers and create opportunities for skilled workforce development.

The initiative aligns with broader government efforts to modernize Malaysia's manufacturing sector and strengthen its position within regional technology markets. Officials indicated the campus would facilitate collaboration between industry, research institutions and government agencies to drive innovation in automation and testing technologies.