KUALA LUMPUR: Semiconductor packaging and testing company, Siliconware Precision Industries Co Ltd (SPIL) today broke ground on its RM6 billion P1 plant at Bandar Cassia Technology Park, Pulau Pinang.

The state-of-the-art facility will sit on an eight hectare plot of land.

In a joint statement today, SPIL said over the next 15 years, the plant is projected to create nearly 3,000 skilled jobs, introduce advanced packaging and testing technologies and offer comprehensive turnkey solutions (including wafer bumping, wafer-level chip packaging, flip chip packaging and testing). "This initiative is expected to significantly reduce production cycles, enhancingefficiency and competitiveness in the semiconductor industry," it said.

Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the groundbreaking of this RM6 billion investment by SPIL validates Malaysia not only as a preferred destination for global semiconductor companies, but also as a country that is serious on the swift implementation of investors' commitments.

Tengku Zafrul said the National Semiconductor Strategic Task Force (NSSTF) - led by MITI - has been driving many key initiatives to attract and implement investments in this sector, supported by MIDA's over 50 years of expertise.

"All these are key success factors for the New Industrial Master Plan 2030, which aims to increase economic complexity and forge stronger linkages betweenglobal companies and local SMEs, while creating more skilled, higher-paying jobs for Malaysians. "I am confident these initiatives will also help elevate our semiconductorsector's position in the global value chain," he said.

Meanwhile, SPIL Malaysia chief executive officer Michael Chang said the establishment of the P1plant will foster innovation in Penang, establishing an advanced packaging and testing base, cultivating semiconductor talents, and enhancing technological capabilities.

Chang expressed gratitude to MIDA and to Invest Penang for their guidance throughout the project, showcasing the successful collaboration between central and local governments.

He further noted 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 strengthen the global packaging and testing market, driving innovation and development within the group, and contributing to economic growth in the Oriental Silicon Valley," he added.

SPIL is committed to environmental sustainability, having implemented multiple green manufacturing measures such as energy and water conservation, and waste reduction during the construction stage.

It plans to obtain Green Building Initiative (GBI) Green Globes Certification and achieve its 2050 net-zero carbon reduction goal through process improvements, green building energy conservation, and investments in green electricity. Ends

https://www.nst.com.my/business/corporate/2024/05/1054749/siliconware-precision-breaks-ground-rm6b-semiconductor-testing