Introduction
Siliconware Precision Industries Co., Ltd. (SPIL), a leading global semiconductor packaging and testing company, has embarked on a significant expansion with the groundbreaking 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 and is set to create nearly 3,000 skilled jobs over the next 15 years.
The Malaysia P1 plant will feature advanced packaging and testing technologies, including wafer bumping, wafer-level chip packaging, and flip chip packaging.
This comprehensive turnkey solution aims to significantly reduce production cycles, enhancing efficiency and competitiveness in the semiconductor industry.
Ceremony Highlights
The groundbreaking ceremony was attended by prominent figures, including YBhg. Dato’ Hairil Yahri Yaacob, Secretary General of the Ministry of Investment, Trade and Industry (MITI); Mr. Sivasuriyamoorthy Sundara Raja, Deputy CEO (Investment Promotion and Facilitation) of the Malaysian Investment Development Authority (MIDA); Dato’ Loo Lee Lian, CEO of InvestPenang; and Mr. Michael Chang, CEO of SPIL Malaysia.
Their presence underscored the project’s importance to the region and the industry at large.
Government Endorsement and Strategic Importance
YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of MITI, welcomed SPIL’s investment. He emphasized Malaysia’s status as a preferred destination for global semiconductor companies.
He highlighted the efforts of the National Semiconductor Strategic Task Force (NSSTF) and MIDA. These efforts attract and implement investments in the sector.
They contribute to the New Industrial Master Plan 2030. This plan aims to increase economic complexity.
It also aims to forge stronger links between global companies and local SMEs. Additionally, it seeks to create higher-paying jobs for Malaysians.
Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, commented on SPIL’s investment.
He noted its substantial benefits for Malaysia’s semiconductor industry. SPIL is one of the top 10 global Outsourced Semiconductor Assembly and Test (OSAT) companies.
Their new facility in Penang strengthens Malaysia’s supply chain. It also accelerates the export of made-in-Malaysia products globally.
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Penang’s Role in the Semiconductor Industry
Dato’ Loo Lee Lian, CEO of InvestPenang, highlighted Penang’s significant contribution to the semiconductor sector, with the state holding a 13 percent market share in semiconductor assembly, testing, and packaging.
She expressed optimism that SPIL’s facility will benefit from Penang’s strategic position as a hub for cutting-edge technologies and growth strategies.
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SPIL’s Vision and Commitment
Mr. Michael Chang, CEO of SPIL Malaysia, stated that the P1 plant will foster innovation in Penang, establish an advanced packaging and testing base, and cultivate semiconductor talents.
He expressed gratitude to MIDA and InvestPenang for their support, showcasing the successful collaboration between central and local governments.
Chang emphasized 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 drive innovation and development within SPIL and contribute to economic growth in the region.
Environmental Sustainability and Global Expansion
SPIL is committed to environmental sustainability, implementing green manufacturing measures such as energy and water conservation and waste reduction.
The company plans to obtain Green Building Initiative (GBI) Green Globes Certification and achieve its 2050 net-zero carbon reduction goal.
As a member of ASE Technology Holding, the world’s largest packaging and testing group, SPIL is expanding its global footprint.
The P1 plant in Penang marks a significant step towards globalisation, introducing advanced packaging technology, and strengthening the existing packaging and testing industry.
Background on SPIL
Founded in 1984, SPIL has become a world-class provider of IC packaging and testing services.
The company offers a wide range of products, including advanced lead frame and substrate-based packages, used in computers, smartphones, IoT devices, and AI technologies.
SPIL’s dedication to quality and technological innovation has established it as a leader in the industry.
With a revenue of approximately US$3.6 billion in 2023 and a workforce of over 20,000 employees, SPIL continues to meet customer needs with high-value solutions.
SPIL serves fabless design houses, integrated device manufacturers, and wafer foundries globally, with production centers in Taiwan, China, and now, Malaysia.
Products and Innovations
SPIL offers various IC packaging and testing services. These include advanced lead frame and substrate-based packages.
Their products are widely used in computers, tablets, and smartphones. They also feature in set-top boxes, LCD monitors, and wearable devices.
Smart appliances, IoT devices, and fingerprint sensors also use SPIL’s technology. Their services extend to smart cars, VR/AR, and artificial intelligence.
Drones, smart speakers, digital cameras, and video game consoles also benefit from SPIL’s solutions. SPIL continuously improves quality and technological innovation.
This has made them a top provider of high-value solutions in the semiconductor industry.
About MIDA and InvestPenang
MIDA is Malaysia’s principal promotion agency under MITI, driving investments in the manufacturing and services sectors.
InvestPenang is the state’s principal agency for promoting investment, enhancing business activities, and supporting growth through foreign and local investments.
Both agencies play crucial roles in realizing Malaysia’s economic development goals.
For more information, visit MIDA and InvestPenang.
Conclusion
The establishment of SPIL’s Malaysia P1 plant represents a landmark development for the semiconductor industry in Malaysia.
This investment leverages advanced technologies and creates thousands of skilled jobs. It will boost the local economy and enhance Malaysia’s position in the global semiconductor supply chain.
SPIL is committed to environmental sustainability and technological innovation. This sets a strong precedent for future investments in the region.
It underscores Malaysia’s strategic importance as a key player in the global semiconductor market.
