Malaysia, through a high-level delegation from Penang, has approached Karnataka for partnerships in semiconductors and deep tech. Led by Penang Deputy Chief Minister II Jagdeep Singh Deo, the team met Karnataka IT & BT Minister Priyank Kharge and Science & Technology Minister N.S. Boseraju in early January 2026. This move aims to blend Penang’s semiconductor manufacturing expertise with Karnataka’s strengths in chip design, R&D, and startups.
Penang, dubbed the “Silicon Valley of the East,” hosts over 20 major semiconductor firms and contributes 10% to Malaysia’s GDP from electronics. Karnataka, home to Bengaluru’s tech hub, boasts 15,000+ startups and leads India in semiconductor design with firms like Infosys and Wipro investing heavily. Discussions covered quantum technology, space tech, smart cities, skilling, and innovation ecosystems. Karnataka shared its Quantum Action Plan, partnering with Indian Institute of Science (IISc) for research infrastructure and education integration.
Both sides eye a Memorandum of Understanding (MoU) to enable talent exchange, joint R&D, and supply chain ties. Penang seeks Karnataka’s software prowess to complement its hardware scale-up, while Karnataka gains from Penang’s advanced materials and manufacturing. Priyank Kharge noted Karnataka’s integrated ecosystems in education and skilling, aligning perfectly with Penang’s industrial base. This collaboration supports India’s semiconductor mission, targeting $1 trillion digital economy by 2026, and Malaysia’s push for high-tech jobs.
FAQs [Frequently Asked Questions]
1. What triggered the Malaysia-Karnataka collaboration talks?
A Penang delegation, led by Deputy CM Jagdeep Singh Deo, visited Bengaluru in January 2026 to discuss synergies in semiconductors, deep tech, quantum, space, and skilling with Ministers Priyank Kharge and N.S. Boseraju.
2. What are the key focus areas for partnership?
Priority sectors include semiconductors/chip design, quantum technology, deep tech, space applications, smart cities, talent exchange, and R&D. An MoU is planned to formalize joint initiatives and innovation ecosystems.
3. How do Karnataka and Penang complement each other?
Karnataka excels in software, chip design, startups, and R&D via IISc; Penang leads in electronics manufacturing, semiconductors, and scale-up. Together, they create end-to-end tech value chains and skilled jobs.