Chow said not many Chinese companies were interested in investing in Penang in the past because of strict restrictions by Beijing on foreign investment.

“These companies are cautious, but of late, we have witnessed a surge in inquiries and successful investment cases as well,” he told reporters here today.

“We are optimistic that these numbers will translate into actual investments.”

Penang has attracted significant investment from global semiconductor giants and plays a critical role in the global semiconductor market, particularly in packaging and testing.

Last December, Reuters reported that Malaysia accounts for 13% of the global market for semiconductor packaging, assembly, and testing and is aiming to boost that to 15% by 2030.

In April, three Chinese semiconductor companies – China Wafer Level CSP, Ningbo SJ Electronics, and Wuxi AMTE Inc – expressed interest in setting up shop in Penang to the tune of US$100 million (RM476 million).

Chow said the 2024 Asia Pacific Semiconductor Summit and Expo in October, which will be backed by the China Electronic Production Equipment Industry Association, will be a major catalyst for Chinese investments and attract top semiconductor players from the region.

Malaysia Semiconductor Industry Association president Wong Siew Hai said China’s role was crucial in filling gaps within the country’s semiconductor sector, highlighting their sub-sector specialisation.

“These are the companies that can add value to our local firms and strengthen our (semiconductor) ecosystem,” he said.

“There are many Chinese companies which are doing specialised work or have technology we don’t, and we can benefit from that.”