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Penang, October 7, 2026 – PEN S J ELECTRONICS SDN. BHD. (PEN S J) is pleased to announce that it has entered into a lease agreement with Penang Development Corporation (PDC) to establish a new advanced packaging materials and thermal management solutions facility in Batu Kawan Industrial Park 3 (BKIP 3), Penang. This milestone represents PEN S J’s continued commitment to expanding advanced semiconductor manufacturing capabilities in Malaysia and strengthening long-term global supply chain resilience. PEN S J plans to invest more than USD 70 million in the BKIP 3 campus. This project is poised to reinforce Malaysia’s advanced packaging ecosystem.

This new facility will be developed in two phases, initially focusing on TIM production and subsequently expanding to IHS production. Upon completion, the facility will serve both global and local customers, support the local semiconductor ecosystem, and create long-term growth opportunities for PEN S J.

S J ELECTRONICS is a leading provider of critical advanced packaging materials and thermal management solutions for high-performance processing chips, and one of only a few manufacturers globally, also the sole company in China capable of mass-producing high-end indium-based TIM1 materials. Leveraging S J ELECTRONICS’ advanced technology capabilities, PEN S J will further expand its manufacturing footprint in Penang, widely known as the “Silicon Valley of the East.”

Through this new facility, PEN S J aims to significantly shorten supply chain lead times and lower warehousing and logistics costs for downstream partners, aligning with Malaysia’s national strategy to elevate local advanced packaging capabilities. PEN S J appreciates the support and facilitation provided by the Penang government in advancing this investment. The project will also contribute to stronger China-Malaysia economic cooperation and support the development of the regional semiconductor ecosystem.

The Right Honourable Mr. Chow Kon Yew, Chief Minister of Penang said, “Penang is honoured to be selected as the location for this strategic investment as S J Electronics expands its global manufacturing footprint. This reflects the company’s confidence in Penang as a trusted manufacturing destination, supported by a robust industrial ecosystem. This investment will further strengthen Penang’s E&E ecosystem, particularly in advanced semiconductor packaging and thermal management, and reinforce our position as the Silicon Valley of the East.”

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About PEN S J Electronics Sdn Bhd
Established in 2023 in Penang, Malaysia, PEN S J ELECTRONICS SDN. BHD. is an advanced electronics and semiconductor manufacturing company. The company specializes in high-end semiconductor materials and advanced packaging solutions. Operating from Penang’s premier industrial technology belt, PEN S J Electronics serves regional and international electronics partners with high-quality microelectronic components, driving innovation across the global tech supply chain.

About InvestPenang
InvestPenang is the Penang State Government’s principal agency for the promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realise its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), Global Business Services (GBS) Focus Group (promoting and developing digital economy), Penang Silicon Design @5km+ (establishing a unique and interconnected ecosystem for IC design and technology enterprises), and Malaysia ATE Campus in Penang (accelerating the co‑development, qualification, and scaling of Malaysian ATE solutions by enabling first-customer deployment). For more information, please visit https://investpenang.gov.my/ and follow InvestPenang’s social media channels: Facebook; LinkedIn; WhatsApp Channel and TikTok.

For media queries, please contact:

PEN S J Electronics Sdn Bhd
James Lau PKT / Ooi Ing Chyuan
james.lau@sje-nb.com / ic.ooi@sje-nb.com
T: +6012 559 7070 / +6012 420 9089

InvestPenang
Elaine Cheah / Ong Yih Hwa
elaine@investpenang.gov.my / yihhwa@investpenang.gov.my
T: +604 646 8833