Chipbond Technology Corporation has officially opened a new advanced semiconductor manufacturing facility in Batu Kawan, Penang, marking a major step in the company’s global expansion and reinforcing Malaysia’s role in the outsourced semiconductor assembly and test (OSAT) value chain.
The new plant, operated by Chipbond Technology Malaysia Sdn Bhd at Valdor Industrial Park, represents a total investment of close to US$200 million, or about RM800 million.
The facility will support advanced wafer bumping, wafer-level chip-scale packaging and testing, with an initial capacity of 10,000 wafers and 100 million wafer-level chip-scale packaging units per month.
It is also equipped to support flip-chip packaging assembly and testing to meet future customer requirements.
Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid of the Malaysian Investment Development Authority (MIDA) said the project contributes to the expansion of Malaysia’s OSAT capacity while strengthening the country’s semiconductor competitiveness.
“This facility represents a new investment that contributes to the expansion of Malaysia’s OSAT capacity and ecosystem while further strengthening the nation’s semiconductor competitiveness.
It brings deeper integration, technology transfer and the building of local capabilities that will benefit Malaysia’s semiconductor ecosystem for years to come,” he said.
He added that Chipbond’s advanced expertise in wafer bumping and chip-scale packaging requires highly skilled engineers, and the company’s training programmes and university collaborations are expected to help equip Malaysians with the skills needed for high-value semiconductor production.
Chief Executive Officer Dato’ Loo Lee Lian of InvestPenang, representing Chief Minister Chow Kon Yeow, said the investment aligns with Penang’s push towards advanced packaging and innovation-driven growth under the National Semiconductor Strategy.
“Backed by more than 50 years of industrialisation and a strong foundation in OSAT, Penang has built a mature ecosystem, a skilled talent base and a conducive business environment.
“Investments such as Chipbond’s are strategic in driving Penang’s shift towards advanced packaging and innovation-led growth,” she said.
Chairman Mr Wu Fei Jain of Chipbond said the facility reflects the company’s commitment to expanding its global footprint and ensuring a stable supply for customers.
“This new facility represents Chipbond’s commitment in expanding our global footprint and assuring customers of a stable and continuous supply. Without the support of the Malaysian government, contributions of our customers and the tireless dedication of Chipbond teams, we would not be able to achieve this challenging goal within such a compressed time frame,” he said.
Internal qualification of the facility was scheduled for completion by the end of 2025, with customer qualification expected to begin in the first quarter of 2026.
The establishment of the new plant highlights Malaysia’s continued attractiveness to global semiconductor players and underscores the country’s growing role in supporting resilient, high-value semiconductor supply chains.
