Mon, 17 Jun 2024



SPIL breaks ground at new RM6b chip plant
Published on: Saturday, May 25, 2024
By: Bernama
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SPIL breaks ground at new RM6b chip plant
Siliconware Precision Industries Co., Ltd. (SPIL), a major global semiconductor packaging and testing company, celebrated a significant milestone with the ground-breaking ceremony of its Malaysia P1 plant at Bandar Cassia Technology Park, Pulau Pinang.
PULAU PINANG: Siliconware Precision Industries Co., Ltd. (SPIL), a major global semiconductor packaging and testing company, celebrated a significant milestone with the ground-breaking ceremony of its Malaysia P1 plant at Bandar Cassia Technology Park, Pulau Pinang.

This state-of-the-art 8-hectare facility represents a substantial investment of RM6 billion. Over the next 15 years, the plant is projected to create nearly 3,000 skilled jobs, introduce advanced packaging and testing technologies such as wafer bumping, and offer comprehensive turnkey solution (including wafer bumping, wafer-level chip packaging, flip chip packaging and testing).

This initiative is expected to significantly reduce production cycles, enhancing efficiency and competitiveness in the semiconductor industry.

The momentous ceremony was attended by YBhg. Dato’ Hairil Yahri Yaacob, Secretary General of Ministry of Investment, Trade and Industry (MITI); Mr. Sivasuriyamoorthy Sundara Raja, Deputy Chief Executive Officer (CEO) (Investment Promotion and Facilitation), Malaysian Investment Development Authority (MIDA); Dato’ Loo Lee Lian, CEO of InvestPenang; as well as Mr. Michael Chang, CEO of SPIL Malaysia. Their presence underscored the importance of this project to the region and the industry at large.

YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of MITI, who warmly welcomes SPIL’s move to Malaysia, 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.

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 between global companies and local SMEs, while creating more skilled, higher-paying jobs for Malaysians. I am confident these initiatives will also help elevate our semiconductor sector’s position in the global value chain.”

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, emphasised, “SPIL’s investment brings substantial advantages to Malaysia’s semiconductor industry. As one of the top 10 global Outsourced Semiconductor Assembly and Test (OSAT) companies, establishing this facility in Penang is a testament to the country’s formidable semiconductor ecosystem.

This project will significantly enhance the country’s supply chain, particularly in the semiconductor industry, and create high-value job opportunities in engineering and technical fields for Malaysians. Additionally, it will accelerate the export of made-in-Malaysia products globally, positioning Malaysia as a key player in the international semiconductor market and driving sustained economic growth.”

Dato’ Loo Lee Lian, CEO of InvestPenang, (representing the Chief Minister of Penang, Right Honourable Mr Chow Kon Yeow) stated, “Malaysia is a significant player in semiconductor assembly, testing, and packaging, holding a 13 percent market share, with Penang making a substantial contribution to this sector.

With the advent of next generation technologies, we are advancing up the value chain to explore advanced packaging.

Penang is proud to be the selected location for SPIL, demonstrating the confidence foreign investors have in Penang as a hub for cutting-edge technologies and growth strategies. I am optimistic that SPIL will reap a myriad of benefits from its facility here in Penang, the Silicon Valley of the East.”

Mr. Michael Chang, CEO of SPIL Malaysia, stated that the establishment of the P1 plant will foster innovation in Penang, establishing an advanced packaging and testing base, cultivating semiconductor talents, and enhancing technological capabilities.

He 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.

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.

The company 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.

Transitioning from Corporate Social Responsibility (CSR) to Environment, Social, and Governance (ESG), SPIL is steadily advancing towards sustainable operations.

As a member of ASE Technology Holding, the world’s largest packaging and testing group, SPIL is actively expanding its global footprint.

Establishing the P1 plant in Penang marks a significant step towards globalisation, introducing advanced packaging technology, and strengthening the existing packaging and testing industry.

This initiative will drive collaboration and accelerate economic growth with SPIL has mastering key technologies such as of CoWoS and Fan-out. 

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