- ATE Campus initiative aims to deepen localisation and industry collaboration
- Industry leaders appointed to steering committee to advance four growth pillars
The Penang state government has allocated ten acres of industrial land worth about US$10 million (RM40 million) to establish the Penang Automation, Test and Equipment (ATE) Campus, an initiative aimed at strengthening the state’s semiconductor equipment ecosystem and supporting Malaysia’s National Semiconductor Strategy (NSS).
The land, located within the Penang Development Corporation (PDC) Industrial Park, will serve as the site for the new campus, which seeks to accelerate innovation, deepen industry collaboration and expand local capabilities in areas such as advanced packaging, semiconductor equipment manufacturing and medical technology.
The announcement was made as InvestPenang convened a closed-door industry workshop bringing together 14 multinational corporations (MNCs) from the integrated device manufacturers (IDM), electronics manufacturing services (EMS) and MedTech sectors, alongside 18 local ATE companies, to explore collaboration opportunities ahead of the campus’s targeted launch in the second quarter of 2026.
Officiated by Penang Chief Minister Chow Kon Yeow, the workshop provided a platform for local ATE companies to better understand industry requirements and identify localisation opportunities with multinational partners.
“The key to its success lies in collaboration. When 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,” Chow said.
The Penang ATE Campus initiative, spearheaded by InvestPenang, 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.
To support implementation, the initiative has identified four key pillars aimed at strengthening Penang’s ATE ecosystem following a series of industry engagement sessions with stakeholders since October 2025.
The pillars focus on industry branding and policy development, localisation pathways, shared laboratory infrastructure, and workforce training and skills development.
Executive leaders from companies including Aemulus, Greatech, Pentamaster, Sophic Automation, TT Vision and Walta Engineering, together with the Penang Skills Development Centre (PSDC), have been appointed to the initiative’s steering committee to guide implementation and long-term development.
The pillars will be championed by industry leaders including Goon Koon Yin of TT Vision Holdings, Tan Eng Kee of Greatech Technology, Chuah Choon Bin of Pentamaster Corporation, and Ng Sang Beng of Aemulus Holdings, among others.
Chaired by InvestPenang CEO Loo Lee Lian, the steering committee will advise on strategic direction, facilitate collaboration between multinational corporations and local suppliers, and support the development of programmes aimed at strengthening Penang’s semiconductor equipment ecosystem.
Since October 2025, InvestPenang has conducted a series of engagement sessions with industry stakeholders to identify growth opportunities within the ATE ecosystem.
At the latest workshop, participating multinational companies included Micron, Motorola, Flex, Jabil, Renesas, Siemens and Monolithic Power Systems, among others, while local ATE companies showcased their capabilities and explored potential collaboration pathways.
Among the attending MNCs, ams Osram, B. Braun and Sandisk also presented potential localisation opportunities for local suppliers.
According to Fortune Business Insights, the global automated test equipment market was valued at US$5.4 billion (RM21 billion) in 2025 and is projected to reach US$9.7 billion (RM38 billion) by 2034, growing at a compound annual growth rate (CAGR) of 7.1%, with Asia Pacific accounting for more than half of the global market.
[RM1 = US$0.22]
Penang currently hosts more than 20 local ATE companies, with at least ten listed on Bursa Malaysia and a combined market capitalisation of approximately RM14 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 RM25 billion in investments between 2020 and 2025, representing more than 40% of Malaysia’s total approved investments in the sector during the same period.
Earlier this month, the Ministry of Investment, Trade and Industry indicated that 13 local companies have been identified as potential candidates under the NSS’s “10+100 local champions” initiative.
The initiative aims to develop ten Malaysian companies capable of achieving annual revenues exceeding RM3.9 billion, alongside 100 companies targeting at least RM1 billion in annual revenue.
Notably, three Penang-based ATE companies have already surpassed RM500 million in annual revenue in 2025, highlighting the growth potential within the state’s semiconductor equipment ecosystem.
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.
The campus is also expected to play a key role in supporting the localisation of semiconductor equipment manufacturing, a key priority under Malaysia’s NSS.
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