Malaysia’s semiconductor industry is set to experience a further boom under the National Semiconductor Strategy (NSS), with the nation set to woo at least RM500 billion of investments in the first phase of the plan, announced Prime Minister Datuk Seri Anwar Ibrahim today.

While describing the NSS as a living document, evolving as needed, he highlighted that Malaysia remains steadfast in its aspiration to become a major global player in technology, powered by the semiconductor industry.

“Against this backdrop, during our National Investment Committee meeting on April 16, I requested a strategic plan for Malaysia’s semiconductor industry.

“Today, six weeks later, I am pleased to share with you the salient features of Malaysia’s NSS,” he said in his speech at SEMICON Southeast Asia 2024 today.

He said NSS is structured in three phases to foster collaboration with companies across ASEAN, Asia, and the global stage.

In the first phase, domestic direct investment (DDI) will focus on integrated circuit (IC) design, advanced packaging and manufacturing equipment, while foreign direct investment (FDI) will be focused on wafer fabs and manufacturing equipment.

“In this phase, we will leverage our industry’s existing capacity and capabilities to support the modernisation of outsourced semiconductor assembly and test (OSAT) with moves towards advanced packaging; grow existing fabs in Malaysia and pursue FDI on expanding capacity in trailing edge chips, particularly power chips; as well as develop local chip design champions,” he said.

Under NSS’ second phase, the nation is keen to establish at least 10 Malaysian companies in design and advanced packaging with revenues of between RM1 billion and RM 4.7 billion (US$210 million and US$1 billion).

It also hoped to nurture at least 100 semiconductor-related companies with revenues close to RM1 billion (US$210 million), creating higher wages for Malaysian workers.

“Phase two is all about moving to the frontier. We will pursue cutting-edge logic and memory chip design, fabrication and testing, and look to integrate the purchasers of these chips.

“Once phase one is implemented, more leading advanced chip manufacturers will be attracted to our shores. This is where our local design champions can be easily integrated into the ecosystem of these advanced fab companies,” he said.

For the last phase, Malaysia aims to double down by supporting the development of world-class Malaysian semiconductor design, advanced packaging and manufacturing equipment firms, while attracting buyers of advanced chips such as Apple, Huawei, Lenovo and other such cutting-edge companies to pursue advanced manufacturing in Malaysia.

To achieve the goals, Anwar said the nation will develop a global research and development hub for semiconductors, featuring world-class universities, corporates and centres of excellence.

On top of that, 60,000 high-skilled Malaysian engineers will be trained and upskilled to support the growing demand from the sector.

The government will also allocate at least RM25 billion in fiscal support to operationalise the NSS with targeted incentives, details of which will be announced by the Investment, Trade and Industry Ministry soon.

“Today, I offer our nation as the most neutral and non-aligned location for semiconductor production, to help build a more secure and resilient global semiconductor supply chain.

“On that note, our key proposition of ‘Malaysia: Bridging Technology for Our Shared Tomorrow’ reflects our sincere aspiration to promote technology for humanity’s greater good, by being your leading partner and collaborator in the global semiconductor industry and beyond,” he said.

In reaffirming Malaysia’s commitment to becoming a global leader in the semiconductor industry, the National Semiconductor Strategic Task Force (NSSTF), with CREST serving as the secretariat, will focus on fostering innovation, enhancing research and development capabilities, and driving the commercialisation of semiconductor technologies.

Source: Bernama

Malaysia aims to woo RM500 bln investments in phase 1 of NSS – PM Anwar

The government will allocate at least RM25 billion (USD 5.3 billion) in fiscal support to operationalise the National Semiconductor Strategy (NSS).

In his keynote address at the launch of SEMICON Southeast Asia 2024, Prime Minister Datuk Seri Anwar Ibrahim said the allocation was among the five targets from NSS that was launched in April, this year.

“The government will train and upskill 60,000 high-skilled Malaysian engineers and allocate at least RM25 billion (USD5.3 billion) in fiscal support to operationalise the NSS with targeted incentives.

“The details (of the incentives) will be announced by the ministry soon,” he said at the launching of SEMICON Southeast Asia 2024 at Malaysia International Trade and Exhibition Centre (Mitec) here, today

Present was International, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Meanwhile, other targets include the attraction of at least RM500 billion in investments for Phase 1 of the National Semiconductor Strategy (NSS) which is spearheaded by the Ministry of International, Trade and Industry (MITI).

“Other targets include the establishment of at least 10 local companies in design and advanced packaging with revenues between RM1 billion to RM4.7 billion, and at least 100 semiconductor-related companies with revenues close to RM1 billion, creating higher wages for Malaysian workers by Phase 2.”

Other targets will also see Malaysia being developed as a global research and development (R&D) hub for semiconductors that feature world-class universities, corporate R&D and centres of excellence.

Source: NST

Govt allocates RM25bil to operationalise National Semiconductor Strategy

Malaysia is aspiring to train and upskill 60,000 high-skilled local engineers, in a bid to boost the local semiconductor sector, Prime Minister Datuk Seri Anwar Ibrahim said.

In his speech at Semicon South-east Asia here, Anwar said that this is one of the five salient features of Malaysia’s National Semiconductor Strategy (NSS).

He also said that the Malaysian government will allocate at least RM25 billion in fiscal support to operationalise the NSS with targeted incentives, details of which will be announced by the Ministry of Investment, Trade and Industry (Miti).

“Technology is evolving rapidly, with adoption rates speeding up exponentially. For example, Netflix took three and a half years to reach a million users, Facebook took 10 months, Instagram took two and a half months, and ChatGPT took just five days. Hence, we need to be agile and adaptable by strengthening our foundations to different contexts and circumstances.

“We also recognise that reaching the frontier of chip technology is neither easy, nor cheap. The world’s leading chip manufacturer, TSMC in Taiwan, has a capital expenditure budget of US$28 billion (RM131.4 billion) to US$32 billion for 2024. While it will take us time to reach there, we are currently focusing on other parts of the value chain. For instance, electric vehicles (EVs) contain over 3,000 chips, two to five times that of ICE (Internal Combustion Engine) vehicles.

“With the growth of the global EV market, Malaysia could become the key hub to supply power chips to EV cars,” Anwar said.

He added that power chips are key in energy transition and decarbonisation technologies and — through Malaysia’s New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR) — Malaysia already has the right policy enablers and incentives for companies wishing to manufacture them here.

“Ultimately, the NSS is a means for Malaysia to advance and democratise technology for the good of all humanity. To achieve this, we need your support, both from those here today and others beyond this room,” he added.

Source: Malay Mail

PM Anwar: Malaysia to train, upskill 60,000 engineers, allocate RM25b in fiscal support for National Semiconductor Strategy

Selangor’s venture into integrated circuit (IC) designing, including the development of Southeast Asia’s biggest IC Design Park in Puchong, aims to elevate Malaysia up the semiconductor industry’s value chain.

Menteri Besar Dato’ Seri Amirudin Shari said now is the best time to push Selangor from just an area of wafer assembly to a hub for designing and intellectual property processes.

He believes the state is well-positioned to achieve this, considering its decades of experience in the electronics and electrical (E&E) industry.

“Selangor’s foray into IC design aims to move Malaysia up the value chain from being just a bit-part player to a strategic player in a large ecosystem.

“This initiative aims to train more than 300 engineers, and we have already secured the interests of key operators.

“However, there are still golden opportunities for us to collaborate,” he said during a Semicon Southeast Asia (SEA) 2024 luncheon session at the Malaysia International Trade and Exhibition Centre today.

Amirudin said Selangor’s strategic vision goes beyond nurturing talent, and it is committed to continuously evolving by understanding the industrial community’s needs.

Later, when speaking to the press, the Menteri Besar said the semiconductor industry holds immense market potential for the nation, extending to regions like Kedah, Penang, and Sarawak.

He said the trade tensions between the United States and China will drive companies globally to seek opportunities in the Southeast Asian region, including Malaysia.

“Thus, I believe that it will create job opportunities in terms of employment and technology transition.

“We are not only seeking investments but also preparing the ecosystem that will foster a skilled workforce in line with current demands,” Amirudin said.

Previously, on April 22, Prime Minister Datuk Seri Anwar Ibrahim announced the development of the region’s largest chip design park in Puchong with the support of the Selangor state government.

He said the park would be a hub for many semiconductor industry players to set up their regional bases, providing a positive spillover effect for the country.

The park, which begins operating by July this year, has already garnered tremendous interest from industry players, prompting its expansion from the initially-proposed three-storey and 45,000-square-foot facility to a five-storey and 70,044-square-foot building.

Enhancing upstream process

Meanwhile, state executive councillor for investment, trade, and mobility Ng Sze Han said IC Design Park’s development is set to enhance the upstream process of Malaysia’s semiconductor industry, aligning with the country’s goal of becoming a semiconductor hub in Asia.

“The semiconductor industry is anticipated to be a significant contributor (to the economy), and Selangor is positioned to assist Malaysia in establishing a comprehensive ecosystem.

“At present, Malaysia’s semiconductor industry is robust, particularly in the downstream process,” he told Selangor Journal after Semicon SEA 2024’s opening ceremony this morning.

Citing Semicon SEA president and chief executive officer Ajit Manocha, Ng said the industry will continue to grow significantly in the future, with a global value of US$1 trillion (approximately RM4.5 trillion) by 2030.

He hopes Selangor will play a key role in contributing to the national semiconductor supply chain. If this objective materialises, it will enable the state to make significant economic contributions to Malaysia.

Previously, economist Prof Barjoyai Bardai had suggested that Malaysia focus on moving up the semiconductor value chain by prioritising sectors like IC design rather than just manufacturing, as current investments towards the industry are still primarily at the lower end of the chain.

Earlier today, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia is looking to capitalise on the opportunity to expand its semiconductor industry, leveraging its five decades of experience in the field.

“Our expectation is to make Malaysia a hub for semiconductors in Asia,” he told the press after delivering his speech at the Semicon SEA 2024 opening ceremony.

“There’s a global demand for semiconductors, given the advancement of technology, especially in artificial intelligence. We, Malaysia, have developed and been part of this industry for the past 50 years.

“This is our opportunity to capitalise on what we have been investing for five decades and move up to the next level,” he said.

Source: Selangor Journal

Through chip designing, Selangor aims to push Malaysia up semiconductor value chain

Malaysia aims to court at least RM500bil of investment in sector, says PM

Malaysia aims to be a global R&D hub for semiconductors, featuring world-class universities, corporate R&D, and centres of excellence, blending the very best of Malaysian and international talent, says Datuk Seri Anwar Ibrahim.

The Prime Minister said through the National Semiconductor Strategy (NSS), Malaysia aims to court at least RM500bil of investment in integrated circuit (IC) design, advanced packaging and manufacturing equipment for semiconductor chips.

“The government will allocate at least RM25bil in fiscal support to operationalise the NSS with targeted incentives, details of which will be announced by Miti (Investment, Trade and Industry Ministry) soon,” said Anwar during his keynote address when launching the SEMICON South-East Asia 2024 yesterday.

The Prime Minister said that the NSS would also train and up-skill 60,000 highly skilled Malaysian engineers, adding that Putrajaya also aims to establish at least 10 Malaysian companies in design and advanced packaging with revenues between RM1bil and RM4.7bil.

In the effort to create higher wages for Malaysian workers, Anwar said the federal administration has set a target of establishing 100 semiconductor-related companies with revenues close to RM1bil.

The Prime Minister said Malaysia is steadfast in promoting technology for humanity’s greater good.

“Geopolitical dynamics aside, a robust multinational semiconductor production remains vital for humankind’s survival, particularly as we are running out of time in our climate action and risk mitigation.

“Today, I offer our nation as the most neutral and non-aligned location for semiconductor production, to help build a more secure and resilient global semiconductor supply chain.

“Our key proposition, ‘Malaysia: Bridging Technology for Our Shared Tomorrow’, reflects our sincere aspiration to promote technology for humanity’s greater good by being your leading partner and collaborator in the global semiconductor industry and beyond,” he added.

Anwar said the salient features of the NSS are the crucial elements in ensuring that the country achieves its ambition of becoming a global chip hub.

Under the NSS, which is led by Miti, Anwar said the strategy is structured in three phases, which are designed to foster collaboration with companies across Asean, Asia, and the global stage.

“Phase one involves building on our foundations; phase two is all about moving to the frontier; and phase three is about innovating at the frontier.

“To stay flexible and agile, the NSS will be a living document, evolving as needed, but we remain steadfast in our aspiration to make Malaysia a major global player in accessible technology for all, powered by our semiconductor industry,” he added.

The Prime Minister also touched on Malaysia’s energy transition plan, saying that the government aims to have 40% of the country’s primary energy mix from renewable energy sources by 2035.

This initiative, he said, aims to reduce carbon dioxide emissions by 10 million tonnes annually and achieve 100% renewable energy by 2050.

“The government supports exploring new technologies like green hydrogen, nuclear technology, and large-scale energy storage to reduce dependence on fossil fuels and meet the 2015 Paris Accords’ targets,” he said.

Source: The Star

Bid to be global semiconductor hub

Aurelius Technologies Bhd (KL:ATECH) has proposed to undertake a private placement of up to 39.41 million shares, or 10% of its issued share capital, mainly to build a new manufacturing plant in Kulim Hi-Tech Park in Kedah.

The placement is expected to raise RM123.34 million based on an illustrative issue price of RM3.13 per share, according to the electronics manufacturing service provider’s filing with Bursa Malaysia on Tuesday.

A total of RM55 million of the gross proceeds will be used for the construction of the new integrated manufacturing plant spanning 243,977 sq ft, followed by RM20.18 million for working capital and RM20 million for new machinery and equipment, the group said.

Another RM15.40 million will go towards the repayment of bank facilities, RM11.5 million for investment in strategic new vacant land and the remaining RM1.27 million for defraying the placement’s expenses.

Maybank Investment Bank has been appointed as the principal adviser and placement agent for the private placement, which is expected to be completed in the second quarter of 2024.

In a separate filing, Aurelius posted a quarterly net profit of RM15.73 million — its highest since being listed in the Main Market of Bursa Malaysia in December 2021 — for the first quarter ended March 31, 2024 (1QFY2024), on revenue of RM125.70 million.

The earnings were driven by an improved order book across all customers, resource optimisation and improved production capacity utilisation from the previous year, the group said.

There are no comparative figures as the group has changed its financial year end to Dec 31, from Jan 31.

Aurelius declared a first interim dividend of 2.7 sen per share, with an ex-date of June 12 and a payment date of July 12.

Aurelius shares closed six sen, or 1.78%, lower at RM3.31 on Tuesday, valuing the group at RM1.30 billion. Year to date, the counter has climbed 73 sen, or 28.29%.

Source: The Edge Malaysia

Aurelius plans to raise RM123 mil via private placement for manufacturing plant, posts record-high quarterly net profit

The Penang government aims to make the state a global high-tech hub to ensure it remains competitive internationally in the semiconductor sector.

Chief Minister Chow Kon Yeow said in addition to continuing to develop the electric and electronic (E&E) sector, especially the semiconductor industry, the state government is also focusing on developing the supply chain for front-end manufacturing equipment and encouraging research and development activities (R&D) and Design & Development (D&D.

“Penang is also committed to encouraging and helping more local companies get involved in the global value chain to move the value chain and strengthen the existing ecosystem.

“In addition, the government also encourages research and development, the use of technology and innovation, especially related to the digitalisation aspect because this is capable of changing the high value and sustainable industrial to generate jobs and income,“ he told the State Assembly today.

He was responding to an oral question from Lee Khai Loon (PH-Machang Bubuk) about the state government’s plan to ensure Penang remains competitive in semiconductor development at the international level.

Chow (PH-Padang Kota) also said that the Semiconductor Strategic Master Plan, pioneered by the Ministry of Investment, Trade and Industry (MITI), is being developed to provide a direction to the semiconductor industry.

This is to ensure the industry continues to develop into more value-added activities and the country remains a quality investment destination, he added.

To achieve this, he said, the state government has to play an important role, especially in facilitating the setting up of factories.

Source: Bernama

Penang aims to become global high-tech hub – Chow

Deputy Premier Datuk Amar Awang Tengah Ali Hasan has invited G-COVE Technologies Co Ltd, a producer of moulded bamboo fibre eco-friendly packaging products based in China, to expand its business and investment activities in Sarawak.

According to a press release from the International Trade, Industry and Investment Ministry’s office, Awang Tengah relayed this to G-COVE president, Eugene Chua, during a working visit to the factory in Chengdu, China yesterday.

This invitation, said the minister, was in line with Sarawak’s aspiration to promote the development of bamboo-based industry as new growth initiatives under the green economy policy.

“We have land, good infrastructure and competitive green electricity tariff in Sarawak and I’d like to invite G-COVE to consider Sarawak as their based for expansion to cater for the growing halal and biodegradable packaging products particularly in Southeast Asia region,” he said in the press release.

During the visit, Chua gave the Sarawak delegates some insights on the company’s mission and operation.

According to Chua, G-COVE’s bamboo-based fibre packaging products are biodegradable and eco-friendly, and are halal-certified, thus are in high demand by the Muslim consumers in China, Middle East countries and Malaysia.

The delegation was also briefed on the company’s investment on latest state-of-the-art technology to ensure that their products are of high quality.

Joining Awang Tengah during the visit were the ministry’s advisor Datuk Seri Naroden Majais, Deputy Minister of Urban Planning, Land Administration and Environment Datuk Len Talif Salleh, and other senior officers from various government agencies. 

Source: Borneo Post

Deputy premier: Sarawak ministry visits China to evaluate technology, products for bamboo processing industry in state

EcoNiLi Battery New Energy Sdn Bhd has launched a battery recycling plant in Perak with an RM50 million investment for its first phase.

Chief executive officer Datuk Jayden Goh said the plant, located in the Tasek Industrial Estate, Ipoh, can process 24,000 metric tons of used batteries annually.

He said the company aims to spearhead Malaysia’s battery recycling industry, with a second phase investment of RM100 million planned for next year.

“Our factory features Malaysia’s first hydrometallurgical plant for integrated critical metal recovery, aligning with the state’s renewable energy policies.

“We expect to produce 12,000 metric tons of black mass containing lithium, cobalt, and nickel, essential for new battery production,” Goh told a media conference.

The facility’s opening, officiated by the Raja Muda of Perak, Raja Jaafar Raja Muda Musa, is set to create 300 jobs, boosting the local economy.

Goh said since 2018 EcoNiLi has established a strong presence in the battery recycling sector in Asia and Europe, with Perak chosen for its strategic location between key northern and central markets in Peninsular Malaysia.

“The state also hosts the Automotive High Tech Valley (AHTV) Project in Tanjung Malim, potentially providing new customers,” he said.

He said plans are underway to develop a second plant in Gopeng, Perak, once the Ipoh facility reaches full capacity.

Initially focusing on domestic demand, he said EcoNiLi aims to position Perak as a hub for lithium-ion battery recycling in Asia while promoting environmental sustainability.

He noted that advancing battery recycling in Malaysia requires collaboration between the government, companies and the community.

“We manage lithium-ion batteries to prevent improper disposal. Many companies collect these batteries but lack the expertise or licences to process them, so we handle it,” Goh added, noting that sources include companies using lithium-ion batteries in equipment, including new energy vehicle firms importing batteries from abroad, primarily China. 

Source: Bernama

EcoNiLi launches RM50m battery recycling plant in Perak

The glove sector has rebounded from its downturn a year ago, according to Malacca Securities’ research head, Loui Low.

Low said that industry players are witnessing a resurgence in profitability, and he anticipates that the heightened import tariffs levied by the United States on China will eventually benefit the industry overall.

“With these factors, volume will be coming back and average selling prices (ASPs) will be maintained. That should provide upside to the glove sectors,” he told Business Times.

According to several analysts reports, the glove industry appears poised for further recovery with the latest financial results of two of the four largest companies in the nation, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd, showing a return to profitability.

For the first quarter ended Mar 31, 2024 (Q1 2024), Kossan posted a net profit of RM31.45 million compared to a deficit of RM24.25 million a year ago, driven by contributions from its glove division. 

Meanwhile, Hartalega posted a net profit of RM12.7 million for the financial year ended Mar 31, 2024, versus a loss of RM235.14 million the previous year. It also logged a net profit of RM15.12 million in the fourth quarter ended Mar 31, 2024, versus a loss of RM319.85 million in the same period last year. 

In a research note, Maybank Investment Bank Bhd (Maybank IB) said Kosan’s results came within its expectations, albeit being below consensus’. 

Given the improving demand for gloves and better pricing power , the firm raised its earnings forecast for the company for financial year 2024 (FY24) until FY26 by nine per cent to 34 per cent. 

“As the margin outlook is improving due to stronger glove demand and higher average selling prices, by its Chinese counterparts, we expect Kossan to report better earnings in the coming quarters as it passes on the higher raw material costs,” it said in a note. 

The firm maintained “buy” on the stock with a higher target price (TP) of RM2.72 versus RM2.70 previously. 

Maybank IB also raised its earnings forecasts for Hartalega by 35 per cent and 19 per cent for FY25 and FY26, respectively, after factoring in the company’s FY24 results, a better utilisation rate, and a higher production capacity of 36 billion and 37.5 billion pieces per annum for FY25 and FY26, respectively. 

It noted that the margin outlook for Hartalega is improving due to stronger glove demand and higher ASP from its Chinese counterparts, as well as better cost efficiency after decommissioning its Bestari Jaya facilities. 

Based on the firm’s conference call with the company’s management, it was noted that sales momentum for Hartalega remained strong, and utilisation rate is expected to improve to more than 80 per cent in the coming months. 

Hartalega’s management also indicated production lines, which are expected to add 2.3 billion pieces per year, are ready to accommodate the rising demand. The company is carefully planning to increase its capacity to 36 billion pieces per year by the end of FY25. 

It kept its “Buy” call on the company with a higher TP of RM4.50. 

Kossan’s results also came in within Hong Leong Investment Bank Bhd’s (HLIB Research) expectations, making up 13.2 . 2 per cent of its full-year estimates and 16.9 per cent of consensus’. 

HLIB Research expects Kossan to deliver sequentially stronger earnings in the coming quarters, underpinned by the commencement of the inventory replenishment cycle, potential trade diversion from the United States (US) to Malaysia as a result of US Food and Drug Administration import alert issues, and a higher import tariff on China in 2026, as well as a higher profit margin from economies of scale.

“On top of the recovery thesis in 2025, we do believe there are potential re-rating prospects for Kossan, considering its more favourable balance sheet and income statement profiles vs Hartalega.”

“Glove inventories amassed during the pandemic are believed to be near depletion, while its peer, Hartalega, received c.2.2 billion pieces of glove orders per month from March onwards.

“Furthermore, we gather that customers are more willing to accept a higher ASP in Q2 2024 to allow glove makers to pass on higher raw material and natural gas prices,” it said in a note. 

In a separate note, the firm added that Hartalega’s earnings for FY24 were in line with its forecast at 99 per cent but came below consensus at 32 per cent. 

“In terms of capacity, Hartalega’s internal target is to increase from 32 billion pieces per year in FY24 to 36 billion in FY25 by commissioning NGC 1.5. Nevertheless, this is dependent on market conditions.”

The research firm kept its “Buy” call on Kossan with an unchanged TP of RM3.23 and maintained “Hold” on Hartalega with an unchanged TP of RM3.62. 

Conversely, Public Investment Bank Bhd is cautious about Kossan’s operational landscape as it expects ASPs to remain stagnant. 

The US government has announced a tariff increase on the import of China’s medical gloves from 7.5 per cent to 25 per cent effective in 2026. 

“This development is expected to narrow the pricing gap between Malaysian and Chinese glove players, enhancing the competitiveness of Malaysian players and enabling them to gain a larger market share. 

“However, we believe the near-term outlook remains challenging due to the sector’s adjustment to global oversupply. 

“Additionally, the anticipated normalization of the dollar and ringgit exchange rate and rising operating expenses, particularly for natural gas and raw materials, suggest further difficulties for the industry’s operating environment despite recent signs of improved demand,” it stated in research notes for both Kossan and Hartalega. 

It said Kossan’s results were within its estimates at 28.5 per cent but below consensus expectation at 17.1 per cent of the full-year forecast, respectively. 

However, it said Hartalega’s FY24 core profit came in below both the firm’s and market expectations at 60 per cent 52 per cent full-year forecasts, respectively. 

“The discrepancy in our forecast was mainly due to lower-than-expected ASPs.”

The firm reiterated its “underperform” call for both stocks, with a higher TP of RM1.48 for Kossan and an unchanged TP of RM2.07 for Hartalega. 

Source: NST

Local glove sector turnaround to be boosted by US tarriff on China glovemakers

Semiconductor packaging and testing company, Siliconware Precision Industries Co Ltd (SPIL) today broke ground on its RM6 billion P1 plant at Bandar Cassia Technology Park, Pulau Pinang.

The state-of-the-art facility will sit on an eight hectare plot of land.

In a joint statement today, SPIL said over the next 15 years, the plant is projected to create nearly 3,000 skilled jobs, introduce advanced packaging and testing technologies and offer comprehensive turnkey solutions (including wafer bumping, wafer-level chip packaging, flip chip packaging and testing). “This initiative is expected to significantly reduce production cycles, enhancingefficiency and competitiveness in the semiconductor industry,” it said.

Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the groundbreaking of this RM6 billion investment by SPIL 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.

Tengku Zafrul said the National Semiconductor Strategic Task Force (NSSTF) – led by MITI – has been driving many key initiatives to attract and implement investments in this sector, supported by MIDA’s over 50 years of expertise.

“All these are key success factors for the New Industrial Master Plan 2030, which aims to increase economic complexity and forge stronger linkages betweenglobal companies and local SMEs, while creating more skilled, higher-paying jobs for Malaysians. “I am confident these initiatives will also help elevate our semiconductorsector’s position in the global value chain,” he said.

Meanwhile, SPIL Malaysia chief executive officer Michael Chang said the establishment of the P1plant will foster innovation in Penang, establishing an advanced packaging and testing base, cultivating semiconductor talents, and enhancing technological capabilities.

Chang expressed gratitude to MIDA and to Invest Penang for their guidance throughout the project, showcasing the successful collaboration between central and local governments.

He further noted that SPIL’s expansion aligns with global trends, positioning Malaysia as an important hub for East Asia and the global industrial supply chain.

“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 added.

SPIL is committed to environmental sustainability, having implemented multiple green manufacturing measures such as energy and water conservation, and waste reduction during the construction stage.

It plans to obtain Green Building Initiative (GBI) Green Globes Certification and achieve its 2050 net-zero carbon reduction goal through process improvements, green building energy conservation, and investments in green electricity.

Source: NST

Siliconware Precision breaks ground on RM6b semiconductor testing and packaging facility in Penang