3REN subsidiary accepts Invest Penang incentives for IC design development

3REN Bhd's subsidiary, Sophic Automation, has accepted a financial incentives package from Invest-In-Penang Bhd to develop integrated circuits designs into products. The incentives period runs from May 14, 2025, to May 14, 2028, and will facilitate 3REN's enhancement of its IC design and development capabilities. This is expected to strengthen the local ecosystem, competitive strength, supply chain resilience, and technological independence.

Title: Sophic Automation's IC Design Development: A Boost for 3REN Bhd and Penang's Tech Ecosystem

3REN Bhd's subsidiary, Sophic Automation, has accepted a financial incentives package from Invest-In-Penang Bhd to develop integrated circuits (IC) designs into products. The incentives period runs from May 14, 2025, to May 14, 2028, and will facilitate 3REN's enhancement of its IC design and development capabilities. This is expected to strengthen the local ecosystem, competitive strength, supply chain resilience, and technological independence.

The financial incentives package is part of Invest-In-Penang Bhd's efforts to attract and retain high-tech businesses in Penang. The package aims to support the development of advanced IC designs, which are critical components in various sectors, including semiconductors, 5G systems, and AI infrastructure.

Sophic Automation's focus on IC design is timely, given the growing demand for AI-capable chips and custom semiconductor solutions. According to Goldman Sachs analyst James Schneider, AI chip stocks like Cadence Design Systems (CDNS) and Broadcom, Inc. (AVGO) are poised for significant growth as the AI investment cycle transitions [1].

Cadence Design Systems, for instance, has been leveraging AI and AI-powered applications to support its work and develop product lines. The company's generative AI platform has the potential to revolutionize semiconductor chip design [2]. Broadcom, Inc., known for its AI-capable chips and application-specific integrated circuits (ASICs), is also well-positioned to benefit from the increasing demand for custom chip design and AI infrastructure [1].

The development of advanced IC designs by Sophic Automation is expected to enhance 3REN Bhd's competitive edge and contribute to the growth of Penang's tech ecosystem. By strengthening its IC design and development capabilities, 3REN Bhd can better serve the needs of local and international clients, thereby bolstering the company's market position.

References:
[1] https://www.ainvest.com/news/ai-chip-stocks-nvidia-goldman-sachs-highlights-cadence-design-systems-names-2507/
[2] https://www.businesswire.com/news/home/20250507827079/en/Cadence-Unveils-Millennium-M2000-Supercomputer-with-NVIDIA-Blackwell-Systems-to-Transform-AI-Driven-Silicon-Systems-and-Drug-Design