Penang gets a boost from US based AI company, Syntiant Corporation

US-based Syntiant Corporation, a global provider of low-powered Artificial Intelligence (AI) solutions, gave Penang a boost with its decision to reinvest US$15 million (RM60.8 million) in manufacturing and research and development (R&D).

It is a significant outlay by a tech company in AI, and despite concerns over the US import tariffs cascading over the manufacturing sector, Syntiant opted to undertake a progressive stance in developing a cohesive ecosystem and global supply chain for AI-installed devices and its smarter chips.

Over a teleconference, Syntiant chief executive officer (CEO) and co – founder, Kurt Busch, praised the ecosystem which Penang provides for tech – driven firms.

The manufacturer now has a presence in both the Bayan Lepas Free Industrial Zone and the Prai Free Industrial Zone.

It is an AI company from Irvine, California, known for AI deployment in smart devices.

Signiant deploys AI semiconductors and algorithms on battery-powered devices, from as small as hearing aids to as large as automobiles and most things in between – making it one of the rare few to install AI on devices instead of just a tool on computing.

Busch said that Syntiant’s AI software is to be embodied in devices; it is not for cloud computing.

Busch said that since the onset, the company has found Penang and the country generally a receptive recipient of foreign capital, while providing excellent supporting services for the company to thrive here.

The company, which includes the government investor – Khazanah Nasional Bhd among part of its investors, is bringing AI to the forefront of Malaysia.

Part of the commitment to Khazanah’s investments, Syntiant has opened the state-of-the-art R & D facility to capitalise on the tremendous growth of AI globally.

Its expansion marks a milestone for the California-founded company’s growth in Asia and reinforces Malaysia’s rising role as a strategic hub for the latest generation in semiconductor chips, which can power AI – installed materials and equipment.

It also sees AI in the manufacturing schemes from enhancing machine – learning capabilities, which can eventually see a boost in production capacity.

“We want to produce faster, safer and energy – efficient solutions across consumer, industrial and enterprise markets. By combining world-class manufacturing with cutting-edge AI research, we can accelerate innovation, better serve our customers and contribute to Malaysia’s growing technology ecosystem,” said Busch.

The new campus more than doubles Syntiant’s footprint in Penang to approximately 220,000 square feet, accommodating the shift of almost 800 workers from an existing nearby 1989 established plant that it acquired via a 2024 acquisition.

The company is also actively working with the public and private institutions of higher learning to provide a skilled workforce.

It will also lead to increasing annual production capacity to around 1.6 billion units eventually, a doubling of the current capacity.

The facility brings together production, engineering and AI research in one location, and features advanced micro-electro-mechanical systems (MEMS) processing, Integrated Circuits preparation, testing and assembly capabilities.

To a question over fears that AI will eventually replace humans in the workforce, Busch replied that: “It is not my quote, but I tell my kids, you should not worry about losing your job to AI, you should worry about losing your job to someone using AI”

As for the US import tariffs, Busch said that the company does not import its products back to the US, so it is not an overall concern over the issue.

On the financial status, Busch said that it is, for now, a private entity since its formation in 2017, but within the next 18 months, the company is seeking a public listing in the US.

“We will definitely release our financial standings when we go public. For now, we are preparing for the listing,” said Busch.