ASE Technology Holding Co. is expanding its chip packaging operations in Malaysia, tripling its facility size to tap growing demand for artificial intelligence processors in Southeast Asia.
The Taiwanese semiconductor assembly and testing giant launched its fifth plant in Penang’s Bayan Lepas Free Industrial Zone, bringing the site’s total floor space to 3.4 million square feet from 1 million square feet. The expansion comes as the global chip industry eyes US$1 trillion in revenue within the next decade.
The facility incorporates AI-powered systems for detecting manufacturing defects and optimizing production processes, ASE CEO Tien Wu said at the opening ceremony. The company plans to add 1,500 employees over several years to support operations at the expanded site.
Malaysia is positioning itself as a regional semiconductor hub as more chipmakers seek to diversify their manufacturing footprint beyond traditional bases like Taiwan. The country’s established presence in chip assembly and testing operations has attracted increased investment as demand surges for advanced processors used in machine learning and autonomous driving applications.
ASE has operated in Penang since 1991, focusing on outsourced semiconductor assembly and test (OSAT) services. The latest expansion strengthens its position in Southeast Asia’s growing semiconductor ecosystem as the region develops more chip design and manufacturing capabilities.
The move also highlights Malaysia’s push to climb the technology value chain, with government officials encouraging local firms to partner with global players like ASE to boost the country’s precision engineering and automation capabilities.
