GEORGE TOWN: Taiwan’s ASE Technology Holding Co Ltd has officially opened its fifth plant in Penang for chip packaging and testing.

The world’s largest provider of outsourced semiconductor assembly and test services has developed its fourth and fifth plants in the Bayan Lepas Free Industrial Zone with an allocation of RM4.5 billion.

President of its Southeast Asia operations, Lee Kwai Mun said the semiconductor services company currently employs over 3,000 people in Malaysia and plans to double that number once the fourth and fifth plants are fully operational in three to five years.

“ASE has 18 factories worldwide. When deciding on opening its first factory outside of Taiwan about 34 years ago, it was crucial to ensure the decision was the right one, as ASE was not what it is today. 

“There was no room for error, and we had to get it right the first time. Looking at what we have today, the founders made the right decision,” he said in his speech at the opening of the fifth plant today. 

Penang Deputy Chief Minister Il Jagdeep Singh Deo was also present.

Lee said the new plant, which would significantly build on the company’s strong packaging and testing capabilities, would expand the floor space of ASE’s Malaysia facility from its current area of 1 million square feet (sq ft) to approximately 3.4 million sq ft. 

He said the Malaysia site has been upgrading its manufacturing operations by integrating Industry 4.0 technology and factory automation solutions.

Meanwhile, ASE Inc. chief executive officer Dr Tien Wu said the new facility is a critical step in strengthening ASE’s global footprint. 

“Southeast Asia is increasingly becoming an important base for semiconductors given its growing digital economy propelling the demand for advanced chips and its shift towards design and chip manufacturing in recent years. 

“With Malaysia solidifying its position as a regional semiconductor hub, we see our expanded facility playing an even greater role across the global semiconductor value chain and contributing to the country’s economic growth,” he said. 

Tien emphasised that ASE remained committed to being a driving force for the development of the local and regional semiconductor industry while continuing to meet and exceed the needs and expectations of its customers. 

Malaysian Investment Development Authority (MIDA) deputy chief executive officer of investment promotion and facilitation Sivasuriyamoorthy Sundara Raja said ASE’s continued expansion in Penang is a testament to the long-standing partnership between Malaysia and Taiwan.

To stay ahead in this ever-changing and competitive field, he said it is crucial for businesses to keep innovating and team up with key industry players. 

“I encourage local companies to look at opportunities to collaborate with leaders like ASE.

“These partnerships will not only drive demand for precision engineering, automation, and semiconductor manufacturing, but they will also help our homegrown leaders,” he added. – Bernama