Penicillin is produced industrially through a fermentation process using the fungus Penicillium chrysogenum. The process involves selecting the microorganism, raw materials like lactose and ammonium sulfate, preparing an inoculum of fungal spores or mycelium, fermenting the fungus in a liquid medium for 6-7 days, and then recovering the penicillin through filtration, extraction with organic solvents, and purification into its salt form. Most modern industrial production of penicillin uses P. chrysogenum due to its high penicillin yields.