Taiwan’s Siliconware breaks ground for RM6 bil facility in Penang

• Over the next 15 years, the plant is projected to create nearly 3,000 skilled jobs, and “significantly reduce production cycles, enhancing efficiency and competitiveness in the semiconductor industry”.

KUALA LUMPUR (May 24): Taiwan-based Siliconware Precision Industries Co Ltd broke ground on Friday for its semiconductor packaging and testing facility worth RM6 billion at Bandar Cassia Technology Park in Penang.

The eight-hectare facility is expected to introduce advanced packaging, testing technologies and turnkey solutions, including wafer bumping, wafer-level chip packaging, flip chip packaging and testing, Malaysian Investment Development Authority (Mida), InvestPenang and Siliconware said in a joint statement.

Over the next 15 years, the plant is projected to create nearly 3,000 skilled jobs, and “significantly reduce production cycles, enhancing efficiency and competitiveness in the semiconductor industry”, the statement said.

Malaysia as a country commands a 13% market share in semiconductor assembly, testing, and packaging. The northern state is home to some of the largest global semiconductor companies, such as Intel and Infineon Technologies, as well as major electronics manufacturers.

Siliconware’s expansion in Penang will position Malaysia as an important hub for the global industrial supply chain, said its chief executive officer Michael Chang.

“This strategic move will strengthen the global packaging and testing market, driving innovation and development within the group, and contributing to economic growth in the Oriental Silicon Valley,” he said.

Minister of Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the investment "validates Malaysia, not only as a preferred destination for global semiconductor companies, but also as a country that is serious on the swift implementation of investors’ commitments".

Siliconware’s investment will significantly enhance the country’s supply chain and create high-value job opportunities in engineering and technical fields for Malaysians, said Sikh Shamsul Ibrahim Sikh Abdul Majid, chief executive officer of Mida, the agency in charge of promoting investments into Malaysia.

"Additionally, it will accelerate the export of made-in-Malaysia products globally, positioning Malaysia as a key player in the international semiconductor market and driving sustained economic growth," he noted.

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