A leading global semiconductor packaging and testing services provider, Chipbond Technology Corporation, has officially opened its new advanced manufacturing facility in Malaysia through its subsidiary, Chipbond Technology Malaysia Sdn Bhd. The plant, located at Valdor Industrial Park, represents a major milestone in Chipbond’s global expansion, backed by a total investment of nearly US$200 million (about RM800 million).

The new facility further reinforces Malaysia’s standing in the global outsourced semiconductor assembly and test (OSAT) value chain, while strengthening its role as a key hub for advanced semiconductor manufacturing. Designed to support high-value processes, the plant will provide advanced capabilities in wafer bumping, wafer-level chip-scale packaging (WLSP), and testing, with an initial capacity of 10,000 wafers and 100 million WLSP units per month. It is also equipped for flip-chip packaging assembly and testing, offering flexibility to meet future technology and customer requirements.

At the opening ceremony, Malaysian Investment Development Authority chief executive officer Malaysian Investment Development Authority Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment significantly expands Malaysia’s OSAT capacity and ecosystem, enhancing the nation’s semiconductor competitiveness. He noted that Chipbond’s advanced OSAT expertise requires highly skilled engineers and will drive technology transfer, structured training programmes, and university collaborations to equip Malaysians for complex, high-value semiconductor production.

Meanwhile, InvestPenang chief executive officer Datuk Loo Lee Lian highlighted Penang’s strong foundation built on more than five decades of industrialisation and a mature OSAT ecosystem. She said investments such as Chipbond’s are strategic in supporting Penang’s shift towards advanced packaging and innovation-led growth, in line with the National Semiconductor Strategy, while fostering deeper knowledge transfer and talent upskilling.

Chipbond chairman Wu Fei Jain said the new facility underscores the company’s commitment to expanding its global footprint and ensuring a stable, continuous supply for customers. He credited the support of the Malaysian government, customers, and the Chipbond team for enabling the project to be completed within a compressed timeframe.

Overall, the Batu Kawan facility is expected to play a pivotal role in strengthening Malaysia’s integrated semiconductor ecosystem, enabling local talent and small and medium enterprises to participate more meaningfully in global value chains.

Image source: Buletin Mutiara & Kastam Negeri Pulau Pinang Facebook

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