ASE Expands Chip Packaging and Testing Facility to Support Next-Gen Applications
ASE has officially inaugurated its fifth plant in Penang, marking a significant milestone in the company’s ongoing expansion. This new facility will play a pivotal role in enhancing ASE’s capabilities in chip packaging and testing within the Bayan Lepas Free Industrial Zone. As part of a strategic growth plan, the plant will contribute to an impressive increase in the total floor area of ASE’s Malaysian operations, expanding from the current 1 million square feet to a substantial 3.4 million square feet.
This launch represents a new era for ASE in Malaysia, driven by the company’s commitment to integrating advanced technologies into its manufacturing processes. Over the years, the Malaysian site has progressively upgraded its operations by adopting Industry 4.0 solutions, incorporating smart factory automation systems and cutting-edge technologies.
The new plant takes this innovation further by leveraging Artificial Intelligence of Things (AIoT) to enhance productivity, efficiency, and operational optimization. From detecting abnormalities in real time with AI-driven monitoring systems to analyzing production data for yield improvement and process optimization, ASE is embracing smart manufacturing to increase factory-floor efficiency and drive growth.
During the launch event, Penang’s Deputy Chief Minister II, Yang Berhormat Jagdeep Singh Deo A/L Karpal Singh, highlighted Penang’s status as an industrial powerhouse in Southeast Asia. He pointed out that the new ASE facility is another testament to the state’s legacy of industrial excellence, noting that the establishment of such a cutting-edge facility further solidifies Penang’s standing as a global leader in the semiconductor sector.
“Penang continues to be a prime destination for global industrial leaders, and ASE’s expansion marks a new chapter in the state’s rich history,” he said. He further reinforced Penang’s growing reputation as the “Silicon Valley of the East,” a title that the state has earned due to its role as a critical hub for semiconductor manufacturing.
ASE’s expansion is not only seen as an important development for Penang, but also for Malaysia as a whole. Mr. Sivasuriyamoorthy Sundara Raja, Deputy CEO of the Malaysian Investment Development Authority (MIDA), emphasized the importance of ASE’s continued investment in the country. He noted that this expansion showcases the long-standing, fruitful partnership between Malaysia and Taiwan, underscoring the value of collaboration in staying ahead in the fast-evolving semiconductor industry.
“ASE’s growing presence in Malaysia is an example of how businesses must innovate and collaborate with global leaders. I encourage local companies to seek opportunities for partnerships with firms like ASE, as these alliances will foster advancements in precision engineering, automation, and semiconductor manufacturing, benefiting the entire Malaysian economy,” he said.
Dr. Tien Wu, CEO of ASE Inc., also addressed the significance of the new plant in advancing the company’s global reach. He explained that Southeast Asia has become an increasingly vital region for the semiconductor industry due to the growing demand for advanced chips spurred by the rapid digital transformation of industries.
Malaysia, in particular, has emerged as a crucial player in the regional semiconductor landscape, and ASE’s expanded facility will enhance the country’s position within the global semiconductor supply chain. “With the expanding digital economy and the growing demand for advanced technologies such as AI, machine learning, and edge computing, the role of Southeast Asia as a semiconductor hub is undeniable,” Dr. Wu said. “ASE is proud to contribute to Malaysia’s continued growth as a leader in the semiconductor industry, while also supporting global market needs.”
The semiconductor industry is experiencing remarkable growth, with projections indicating that the market will reach a staggering US$1 trillion in revenue over the next decade. As a key player in the Outsourced Semiconductor Assembly and Test (OSAT) sector, ASE’s contribution is crucial to the global electronics supply chain. Since 1991, ASE Malaysia has been serving major semiconductor companies, providing essential packaging and testing services that enable the production of a wide range of advanced chips. With the increasing need for AI-driven technologies and cutting-edge chips for applications such as autonomous driving, electric vehicles, and AI-enhanced services, ASE’s new plant will position the company to meet these rising demands.
The expansion is not just about upgrading technology and increasing production capacity—it also involves a significant commitment to local talent. As ASE continues to grow, the company plans to increase its workforce by 1,500 employees over the next few years. These new hires will be integral to ensuring the success of the expanded facility, with a focus on providing opportunities for training and professional development to keep pace with the rapid evolution of the semiconductor industry. ASE’s investment in its human capital demonstrates the company’s dedication to both technological advancement and fostering a highly skilled workforce in Malaysia.
The new plant represents a major leap forward for ASE in terms of technological capabilities, operational efficiency, and overall capacity. By integrating smart manufacturing practices, AIoT, and Industry 4.0 technologies, the company is not only enhancing its ability to meet the demands of the global market but also setting a new standard for advanced manufacturing in Southeast Asia. The facility will allow ASE to increase its production capabilities, improve quality control, and achieve greater consistency across its semiconductor testing and packaging processes.
The expansion of ASE’s Malaysia facility is a win-win for both the company and the broader Malaysian economy. By reinforcing Malaysia’s position as a global semiconductor hub, ASE is helping to drive the country’s economic growth while also contributing to the ongoing development of the digital economy. With a focus on high-tech innovation and sustainable growth, ASE’s new facility will play a key role in the evolving landscape of the semiconductor industry in the years to come.
Looking forward, ASE remains committed to leading the charge in semiconductor packaging and testing, providing critical support to the global electronics industry. With its advanced manufacturing technologies, highly skilled workforce, and robust commitment to growth, ASE is well-positioned to continue making an impact on the global semiconductor value chain. The new Penang plant is a testament to ASE’s forward-thinking approach to innovation, and it marks a new chapter in the company’s long and successful history in Malaysia. The future of smart manufacturing is here, and ASE is ready to lead the way.
