ASE Investment Holdings, a key player in semiconductor packaging and testing, has announced a significant expansion in Malaysia. The company’s Malaysian subsidiary has invested RM69.696 million (around NT$464 million) to secure land use rights in Guihua City Technology Park, Penang. This move is a strategic step to meet the growing operational demands in the region.
Industry experts note that ASE’s investment in Penang is primarily focused on bolstering its advanced packaging production capacity. ASE Semiconductor, a subsidiary under ASE Investment Holdings, is already in the process of expanding its Malaysian packaging and testing facility. With the groundbreaking of its fourth and fifth factories in Penang in November 2022, the company projects completion by 2025. ASE had previously announced a five-year investment plan of US$300 million to enhance its Malaysian operations, including the construction of new production plants, procurement of advanced equipment, and the development of engineering talent.
Since 1991, ASE’s Malaysian facility has been providing a range of packaging and testing services to numerous semiconductor companies. These services cater to various sectors, including consumer electronics, communications, industrial, and automotive industries. In September last year, ASE reported an annual turnover of approximately US$350 million from its Penang plant, projecting a potential doubling to US$750 million within two to three years.
The Penang facility, established in February 1991, recorded revenue of NT$6.972 billion and a profit of NT$987 million in 2022. ASE’s Malaysian operations encompass a variety of packaging and testing products, such as lead frame packaging, wire bonding BGA packaging, flip chip packaging, memory packaging, and wafer level chip size packaging (WLCSP).
This expansion is part of a larger trend in the semiconductor industry, with companies increasingly establishing a presence in Penang. Yingwei, a test interface factory, has already set up a testing service base in Penang and is considering further expansion in Southeast Asia, with Malaysia as a potential priority. Similarly, China Tongfu Microelectronics has advanced its packaging production capacity in the region, following acquisitions of factories in Suzhou and Penang.
