Malaysia starts building Penang 'Silicon Island' for AI and chips
Malaysia is reclaiming land off Penang's southern coast for Silicon Island, a roughly 2,300-acre man-made development intended for chip design, advanced packaging and automated testing, with completion expected over about a decade. Reclamation and infrastructure costs are put at RM14 billion; the plan includes a roughly 700-acre Green Tech Park whose first phase is intended to run entirely on renewable energy, plus 402 acres of green space. A Deloitte study cited by the developer projects RM1.1 trillion in cumulative economic output and about 220,000 jobs by 2050, though the first industrial operations are not expected until early 2029.
It is a long-term expansion of Southeast Asia's semiconductor supply base that could eventually broaden regional options for AI servers and enterprise hardware, but it will not ease near-term availability.