ASE has officially launched its fifth plant in Penang, which will significantly build on the company’s strong packaging and testing capabilities in the Bayan Lepas Free Industrial Zone. The new plant is part of a strategic expansion plan that will expand the floor space of ASE’s Malaysia facility from its current area of 1 million square feet to approximately 3.4 million square feet.
The new launch ushers in a new era of smart manufacturing for the provider of independent semiconductor packaging and test manufacturing services in Malaysia. Over the years, the Malaysia site has been upgrading its manufacturing operations by integrating Industry 4.0 technology and factory automation solutions.
The new facility leverages the capabilities of Artificial Intelligence of Things (AIoT) to improve productivity and efficiency on the factory floor, from employing AI to detect irregularities to using data analysis to optimize production processes and improve yield.
OSAT manufacturing is still essential to the global electronics supply chain, as the semiconductor business is expected to generate $1 trillion in revenue over the next ten years. Since 1991, the company – a prominent OSAT participant, has provided services to significant semiconductor businesses.
The new facility opens at a time when a variety of next-generation applications in machine learning, enterprise-led AI use cases, edge computing, electric vehicles and autonomous driving, and other areas are calling for more sophisticated AI processors. In order to increase its market share and broaden and deepen its service offerings, the company is dedicated to investing in human capital and resources.
Leadership Comments
Speaking at the event, Penang Deputy Chief Minister II Yang Berhormat Jagdeep Singh Deo A/L Karpal Singh mentioned, “Backed by over fifty years of industrial excellence, Penang continues to be a premier investment destination for global industrial leaders seeking to expand in Southeast Asia. The establishment of ASE’s new chip packaging and testing facility marks a significant milestone, introducing cutting-edge technological capabilities to its decades-long operations in the state. This further cements Penang’s position as a powerhouse in the global semiconductor landscape, reinforcing its reputation as the ‘Silicon Valley of the East.’”
Meanwhile, Sivasuriyamoorthy Sundara Raja, Deputy Chief Executive Officer, Investment Promotion and Facilitation of MIDA, emphasised ASE’s contribution to Malaysia’s growing technological leadership, “ASE’s continued expansion here is a testament to the long-standing partnership between Malaysia and Taiwan. To stay ahead in this ever-changing and competitive field, it’s crucial for our businesses to keep innovating and team up with key industry players. That’s why I encourage our local companies to look at opportunities to collaborate with leaders like ASE. These partnerships will not only drive demand for precision engineering, automation, and semiconductor manufacturing, but they’ll also help our homegrown leaders.”
Also in attendance was Dr. Tien Wu, CEO of ASE Inc, who hailed the facility as a critical step in strengthening ASE’s global footprint, “Southeast Asia is increasingly becoming an important base for semiconductors, given its growing digital economy propelling the demand for advanced chips and its shift towards design and chip manufacturing in recent years. With Malaysia solidifying its position as a regional semiconductor hub, we see our expanded facility playing an even greater role across the global semiconductor value chain and contributing to the country’s economic growth. ASE remains committed to being a driving force for the development of the local and regional semiconductor industry, while continuing to meet and exceed the needs and expectations of our customers.”
