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Penang looks past hyperscale data centres, doubles down on chips

The northern state shuns the data centre race to focus on its stronger competitive advantages

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Tan Ai Leng

Tan Ai Leng

Published Mon, May 11, 2026 · 02:31 PM
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    • Often dubbed the “Silicon Valley of the East”, Penang handles an estimated 5% per cent of global semiconductor sales.
    • Often dubbed the “Silicon Valley of the East”, Penang handles an estimated 5% per cent of global semiconductor sales. PHOTO: TAN AI LENG, BT

    [KUALA LUMPUR] While other Malaysian states are racing to attract billion-ringgit data centre investments, Penang is taking a different approach. It is staying out of the hyperscale data centre race to focus on areas where it believes it holds better competitive advantages – semiconductors.

    Loo Lee Lian, CEO of investment promotion agency InvestPenang, said the state is doubling down on semiconductors, advanced packaging, integrated circuit (IC) design and precision engineering.

    She said these industries offer stronger economic spillover effects and align more naturally with the state’s existing industrial ecosystem.

    SemiconductorsData centresMalaysiaJohor-Singapore SEZAseanAsean Business

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