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PEN S J Electronics Sdn Bhd (PEN S J) is set to expand its manufacturing footprint in Penang with a new advanced packaging materials and thermal management solutions facility at Batu Kawan Industrial Park 3 (BKIP 3).

The company has entered into a lease agreement with Penang Development Corporation (PDC) for the new facility, which will involve an investment of more than US$70 million. The project is expected to strengthen Penang’s role in Malaysia’s semiconductor and advanced electronics manufacturing ecosystem.

The facility will be developed in two phases. The first phase will focus on the production of thermal interface materials (TIM), while the second phase will expand into integrated heat spreader (IHS) production.

According to PEN S J, the facility will serve both local and international customers, while supporting the wider semiconductor supply chain in the region. The company expects the local manufacturing base to help shorten supply chain lead times and reduce warehousing and logistics costs for downstream partners.

PEN S J is a Malaysian company established in Penang in 2023, specialising in high-end semiconductor materials and advanced packaging solutions. It is associated with S J Electronics, which specialises in advanced packaging materials and thermal management solutions for high-performance processing chips.

The company said the new investment will leverage S J Electronics’ technology capabilities to expand its manufacturing presence in Penang, which is widely recognised as the “Silicon Valley of the East”.

Penang Chief Minister Chow Kon Yeow said the investment reflects the company’s confidence in Penang as a manufacturing location and will further strengthen the state’s electrical and electronics (E&E) ecosystem, particularly in advanced semiconductor packaging and thermal management.

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