Leading outsourced semiconductor and assembly and test (OSAT) player, Advanced Semiconductor Engineering, Inc. has embarked on the construction of a new semiconductor assembly and testing facility at ASE Malaysia (ASEM) in the Bayan Lepas Free Industrial Zone.

The new facility, with a built-up area of 982,000sq ft, will comprise two buildings (Plants 4 and 5).

According to the media release, ASEM will be investing US$300 million over the next five years to expand its production floor space, procure advanced equipment, and train and develop more engineering talent.

“The new facility announced today is scheduled to the completed in 2025 and will create 2,700 additional job opportunities for the local market,” the statement read, adding that the company hosted a groundbreaking ceremony today.

The media release also stated that high-demand packaging product types, which include, copper clips and imaging sensors would be the core focus of the new facility.

“Green construction methods that emphasise ecological balance, conservation, and resource recycling and reuse will be adopted for the new building. This further demonstrates ASE’s commitment to sustainable development and environmental protection.

“As the leading OSAT player, ASEM has been serving major semiconductor companies that supply advanced chips in consumer, communication, industrial and automotive applications since 1991,” it stated.

ASE Southeast Asia president Lee Kwai Mun said the investment announcement demonstrated ASE’s confidence in the regional stability of Penang and its business-friendly policies that are conducive to foreign investments.

“A major factor influencing our investment decision was the availability of a diverse and skilled talent pool in Penang, honed over the years from concerted government and industry efforts to develop a robust and skilled workforce.

“The depth of knowledge required in management skills and technical know-how are critical to ASE’s growth in a fast-paced and high-tech industry,” he said.

In a statement, Chief Minister Chow Kon Yeow said it was heartening to see investors like ASE expanding their footprint in the state, anchoring Penang’s position as the global semiconductor hub.

“Penang’s commendable performance has greatly demonstrated the state’s sustained excellence as the Silicon Valley of the East.

“Above that, I am pleased to note that our conducive environment enables the adoption of sustainable practices by ASE,” he said.

Source: Buletin Mutiara