ASE Breaks Ground on New Chip Assembly and Testing Facility in Penang, Malaysia

Rhea-AI Summary

Advanced Semiconductor Engineering, Inc. (ASX) has announced the groundbreaking of a new semiconductor assembly and testing facility in Penang, Malaysia. This investment of USD300 million over five years will create 2,700 jobs and double ASE's production space to 2 million square feet. The new facility, expected to be completed by 2025, will focus on high-demand packaging products and will implement green construction methods. ASE's expansion underscores its commitment to enhancing its global semiconductor operations and leveraging Penang's skilled workforce.

Positive

• Investment of USD300 million in new facility.
• Creation of 2,700 jobs in Penang.
• Doubling of production space to 2 million square feet.
• Focus on high-demand packaging products like copper clips and image sensors.
• Commitment to sustainability through green construction methods.

Negative

• None.

PENANG, Malaysia--(BUSINESS WIRE)-- Advanced Semiconductor Engineering, Inc. (ASE, a member of ASE Technology Holding Inc, NYSE: ASX, TWSE: 3711) hosted a groundbreaking ceremony today for the construction of a new semiconductor assembly and testing facility in Penang, Malaysia. The new facility at ASE Malaysia (ASEM) will comprise 2 buildings (Plants 4 and 5) with a built-up area of 982,000 square feet, located in the Bayan Lepas Free Industrial Zone.

Reference Image of ASE Malaysia (ASEM) new buildings (Plants 4 and 5) with a built-up area of 982,000 square feet, located in the Bayan Lepas Free Industrial Zone. (Photo: Business Wire)

The semiconductor industry has witnessed rapid growth driven by demands from 5G, AI, high performance computing and automotive electronic developments. Outsourced semiconductor assembly and test (OSAT) manufacturing continues to form a critical link in the global electronics supply chain. As a leading OSAT player, ASEM has been serving major semiconductor companies that supply advanced chips in consumer, communication, industrial and automotive applications since 1991. Over the decades, the company has strategically deployed capital investments as it captures more market share and extends the breadth and depth of its service offerings.

ASEM will be investing USD300 million over a period of 5 years to expand its production floor space, procure advanced equipment, and train and develop more engineering talent. The new facility announced today is scheduled to be completed in 2025 and will create 2,700 additional job opportunities for the local market. Together with Plants 4 and 5, ASEM will have a total of 2 million square feet of floor space, representing a two-fold increase from the current floor space. High demand packaging product types including copper clip and image sensors will be the core focus of the new facility. Green construction methods that emphasize ecological balance, conservation, and resource recycling and reuse will be adopted for the new building, further demonstrating ASE’s commitment to sustainable development and environmental protection. ASEM will also be actively recruiting in the new year and beyond to strengthen its manpower base and contribute to the growth of semiconductor talent in Penang.

‘It is heartening to see investors like ASE expanding its footprint in the state, anchoring our position as the global semiconductor hub. Penang’s commendable performance that continues to punch above our weights have greatly demonstrated the state’s sustained excellence as the Silicon Valley of the East. Above that, I am pleased that our conducive environment enables the adoption of sustainability practices by ASE.

Stepping into Penang’s 50th anniversary of industrialisation this year, I am looking forward to witness our next leap, where this exciting era offers enormous prospect for value creation, making Penang shine in the world map of technology. Through InvestPenang, the state government stays fully committed to provide our best possible facilitation service for ASEM’s expansion project here.’

- Right Honourable Mr Chow Kon Yeow, Chief Minister of Penang

‘Today’s announcement is a demonstration of ASE’s confidence in the regional stability of Penang and its business friendly policies that are conducive to foreign investments. A major factor influencing our investment decision was the availability of a diverse and skilled pool of talent in Penang, honed over the years from concerted government and industry efforts to develop a robust and skilled workforce. The depth of knowledge required in management skills and technical know-how are critical to ASE’s growth in a fast paced and high tech industry.

In the past two and a half years, the pandemic has posed many challenges to us but we were still able to develop new businesses and plans for growth and expansion, thanks to the resilience and support from the ASEM employees. I would also like to take this opportunity to thank all of our customers for their trust and partnership over the years. ASEM is an integral part of the ASE global operation, and we continue to offer customers leading edge technologies, service quality, and the flexibility to adapt their supply chain strategies amidst market uncertainties.’

- Mr Lee Kwai Mun, President of ASE Southeast Asia

Dubbed the Silicon Valley of the East, Penang has successfully transformed itself into Malaysia’s leading electrical and electronics (E&E) hub that is home to some of the world’s leading tech companies. According to the Department of Statistics Malaysia and UN Comtrade, Penang commands an estimated 5% of global semiconductor exports in 2019. Penang remains a strategic location within ASE’s global manufacturing footprint, and allows ASE’s customers to tap on Southeast Asia’s robust industry ecosystem and talent base.

About InvestPenang

InvestPenang is the Penang State Government’s principal agency for promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centres. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Centre (aiding SMEs), Penang CAT Centre (for talent attraction and retention) and i4.0 seed fund (a catalyst for the start-up ecosystem). For more information, please visit https://investpenang.gov.my/. Do follow us on InvestPenang’s social media channels: LinkedIn ; Facebook

About ASE

Advanced Semiconductor Engineering, Inc. (ASE) is the leading global provider of semiconductor manufacturing services in assembly and test. Alongside a broad portfolio of established assembly and test technologies, ASE is also delivering innovative advanced packaging and system-in-package solutions to meet growth momentum across a broad range of end markets, including 5G, Automotive, High Performance Computing and more. To learn about our advances in SiP, Fanout, MEMS & Sensor, Flip Chip, and, 2.5D, 3D & TSV technologies, all ultimately geared towards applications to improve lifestyle and efficiency, please visit: aseglobal.com or follow us on LinkedIn and Twitter - @aseglobal.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221109006137/en/

bitkun@investpenang.gov.my

pheiwen@investpenang.gov.my

ASE US & Europe: Patricia.MacLeod@aseus.com

ASE Asia Pacific: Jennifer.Yuen@aseus.com

Source: Advanced Semiconductor Engineering, Inc.

FAQ

What is the investment amount for the new ASE facility in Penang?

ASE is investing USD300 million over five years for the new facility.

How many jobs will the new ASE facility create in Penang?

The new facility will create 2,700 additional job opportunities in Penang.

When is the completion date for the new ASE facility in Penang?

The new facility is scheduled to be completed by 2025.

What is the focus of the new ASE semiconductor facility?

The new facility will focus on high-demand packaging products, including copper clips and image sensors.

How much will ASE's total floor space increase with the new facility?

ASE's total floor space will double to 2 million square feet with the new facility.