Singapore-headquartered Galatek Technologies on Friday announced that it has opened a new facility in Penang, Malaysia, as the country seeks to strengthen its position as one of Southeast Asia’s key hubs for semiconductor equipment, advanced electronics and AI-enabled manufacturing.
The facility starts with an initial investment of about $2 million, with plans to scale to $60 million over the next three years and reach $100 million within five years, according to a statement.
The facility comes as Malaysia pushes to move up the AI manufacturing value chain. Penang is at the heart of that effort. The northern Malaysian state has long been the country’s main electronics and semiconductor manufacturing cluster, supported by multinational manufacturers, local suppliers, engineering talent and export-oriented industrial parks. More recently, the state has been positioning itself as a base for higher-value activities tied to AI, automation, semiconductor equipment and supply chain diversification.
Galatek provides AI-enabled automation, semiconductor equipment and life science technologies. Its Penang site will serve as a regional production and delivery centre for customers in semiconductor equipment, advanced electronics, life sciences and sustainable energy across Southeast Asia and international markets.
The firm’s last fundraising was in December 2025, when it announced that it had secured about $30 million in Series A funding to accelerate product development and deepen local expertise in key markets across Europe, North America and Southeast Asia.
“The global demand for AI-enabled semiconductor and advanced manufacturing equipment is at an inflection point, and the companies that have built the right capabilities ahead of that curve will define the next decade. Galatek is one of them,” said Jenny Lee, senior managing partner of Granite Asia.
Lee added that Penang’s industrial heritage, engineering talent and policy environment make it “the right home” for Galatek’s next phase of growth.
The Penang facility also comes as Granite Asia sharpens its focus on AI-linked investment opportunities across the region. In February, the firm raised $110 million for an AI-focused IPO fund distributed exclusively to DBS wealth clients, one of the first initiatives under a three-year partnership aimed at delivering innovative financing, broadening capital access and supporting the growth of Asia’s high-potential companies.
The fund invests in initial public offerings of high-growth AI companies, giving investors early access to such opportunities, according to an earlier statement. Granite Asia said at the time that more than 13,000 AI-driven companies have been founded in Asia since 2015, many of which are now seeking capital to accelerate growth.
Investor participation in the fund was broad, spanning Southeast Asia, South Asia and Europe.
