Business

Friday July 24, 2009

NCIA invests over RM20mil for IC industry

By DAVID TAN


GEORGE TOWN: The Northern Corridor Implementation Authority (NCIA) is investing over RM20mil in a centre of excellence for the electrical and electronics integrated circuit (IC) design industry.

Vice-president Cheang Wai Mun said the centre would be housed in a 60,000-sq-ft building (currently undergoing renovation) in Bayan Lepas and would be managed and operated by USAINS Info Tech Sdn Bhd, a subsidiary of USAINS Holdings Sdn Bhd, the commercial arm of Universiti Sains Malaysia (USM).

“The centre would provide consultation services such as research and development in microelectronics design, pay-per-use of IC design tools and facilities, training and development programmes in microelectronics systems, and design consultation and engineering resources for projects,” Cheang told StarBiz.

He said the initial funding for the centre would come from NCIA.

“We plan for the centre to be self-sustaining after two years,” Cheang said, adding that USAINS Holdings managing director Datuk Dr Gan Ee-Kiang had been appointed to head the centre. A memorandum of agreement between NCIA and USAINS Holdings will be signed today.

Cheang said the purpose for such a centre was to encourage the establishment of new local electronics companies specialising in IC design, and to strengthen the local small and medium enterprises in the electrical and electronics sector.

There were some 2,000 engineers in the country employed by multinational corporations in the northern region, of which at least 1%, or 20 engineers, had the aspirations to start their own business, he said.

“But, because of the high start-up capital – about RM10mil is at least needed to purchase electronics design automated equipment – only a few dare to venture into the IC designing business.

“However, with the centre, aspiring IC design entrepreneurs could come to us for consultation and training, as the fees will be very affordable,” Cheang said.

The facility, to be equipped with state-of-the-art electronic design automated equipment imported from the US, will start operations in October or November. “In the meantime, the centre will operate from the USAINS building in USM,” he said.

Meanwhile, Gan said with the centre, all three players – a government agency, the academia and the private sector – could work together to develop projects.

“Previously, they developed their own IC design projects, which could end up as white elephants, as the intellectual property might not be properly commercialised.

“With the sharing of their expertise, the projects should achieve commercial success,” he said.

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