[Press Release] SPIL Breaks Ground on New RM6-Billion Semiconductor Packaging and Testing Facility

[Press Release] SPIL Breaks Ground on New RM6-Billion Semiconductor Packaging and Testing Facility

24 May 2024

May 24, 2024 – Siliconware Precision Industries Co., Ltd. (SPIL), a major global semiconductor packaging and testing company, celebrated a significant milestone today with the ground-breaking ceremony of its Malaysia P1 plant at Bandar Cassia Technology Park, Pulau Pinang. This state-of-the-art 8-hectare facility represents a substantial investment of RM6 billion. Over the next 15 years, the plant is projected to create nearly 3,000 skilled jobs, introduce advanced packaging and testing technologies such as wafer bumping, and offer comprehensive turnkey solution (including wafer bumping, wafer-level chip packaging, flip chip packaging and testing). This initiative is expected to significantly reduce production cycles, enhancing efficiency and competitiveness in the semiconductor industry.

The momentous ceremony was attended by YBhg. Dato’ Hairil Yahri Yaacob, Secretary General of Ministry of Investment, Trade and Industry (MITI); Mr. Sivasuriyamoorthy Sundara Raja, Deputy Chief Executive Officer (CEO) (Investment Promotion and Facilitation), Malaysian Investment Development Authority (MIDA); Dato’ Loo Lee Lian, CEO of InvestPenang; as well as Mr. Michael Chang, CEO of SPIL Malaysia. Their presence underscored the importance of this project to the region and the industry at large.

YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of MITI, who warmly welcomes SPIL’s move to Malaysia, 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. 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 between global companies and local SMEs, while creating more skilled, higher-paying jobs for Malaysians. I am confident these initiatives will also help elevate our semiconductor sector’s position in the global value chain.”

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, emphasised, “SPIL’s investment brings substantial advantages to Malaysia’s semiconductor industry. As one of the top 10 global Outsourced Semiconductor Assembly and Test (OSAT) companies, establishing this facility in Penang is a testament to the country’s formidable semiconductor ecosystem. This project will significantly enhance the country’s supply chain, particularly in the semiconductor industry, and create high-value job opportunities in engineering and technical fields for Malaysians. Additionally, it will accelerate the export of made-in-Malaysia products globally, positioning Malaysia as a key player in the international semiconductor market and driving sustained economic growth.”

Dato’ Loo Lee Lian, CEO of InvestPenang, (representing the Chief Minister of Penang, Right Honourable Mr Chow Kon Yeow) stated, “Malaysia is a significant player in semiconductor assembly, testing, and packaging, holding a 13 percent market share, with Penang making a substantial contribution to this sector. With the advent of next-generation technologies, we are advancing up the value chain to explore advanced packaging. Penang is proud to be the selected location for SPIL, demonstrating the confidence foreign investors have in Penang as a hub for cutting-edge technologies and growth strategies. I am optimistic that SPIL will reap a myriad of benefits from its facility here in Penang, the Silicon Valley of the East.”

Mr. Michael Chang, CEO of SPIL Malaysia, stated that the establishment of the P1 plant will foster innovation in Penang, establishing an advanced packaging and testing base, cultivating semiconductor talents, and enhancing technological capabilities. He 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.

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. The company 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. Transitioning from Corporate Social Responsibility (CSR) to Environment, Social, and Governance (ESG), SPIL is steadily advancing towards sustainable operations.

As a member of ASE Technology Holding, the world’s largest packaging and testing group, SPIL is actively expanding its global footprint. Establishing the P1 plant in Penang marks a significant step towards globalisation, introducing advanced packaging technology, and strengthening the existing packaging and testing industry. This initiative will drive collaboration and accelerate economic growth with SPIL has mastering key technologies such as of CoWoS and Fan-out.




About MIDA
MIDA is the government’s principal promotion agency under the Ministry of Investment, Trade and Industry (“MITI”) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, Tik Tok, and YouTube channel.

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 realize its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), and Global Business Services (GBS) Focus Group (promoting and developing digital economy). For more information, please visit https://investpenang.gov.my/ and follow InvestPenang’s social media channels: Facebook; LinkedIn.

About SPIL
SPIL is a member of ASE Technology Holding (“the Group”), the world’s largest packaging and testing group. Established in 1984, SPIL mainly provides various IC packaging and testing services. In 2023, the revenue was approximately US$3,636M and the number of employees has reached more than 20,000. SPIL is dedicated to meeting all customer’s integrated circuit packaging and testing requirements. Our turnkey solutions range from bumping, wafer sort, assembly, final test, to shipment. SPIL continues to be a professional supplier that creates high added value through quality improvement and technological innovation, while ensuring the company’s sustainable operations and creating maximum profits for shareholders. SPIL has become a world-class packaging and testing company. Products include advanced lead frame and substrate-based packages, which are widely used in, but not limited to, computers, tablets, cellular phones, set-top boxes, LCD monitors, wearable devices, smart appliances, IoT, fingerprint sensor, smart cars, VR/AR, artificial intelligence, drones, smart speakers, digital cameras and video game consoles. Our dedication to enhancing quality and developing technical innovations to satisfy customers’ needs has made SPIL one of the top leaders in creating high value-added solutions, to the point where we are now the world class IC packaging and testing services provider. SPIL provides services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. We constantly upgrade our processes to meet the demand for the most advanced manufacturing technology and also build a strong reputation for high quality products and services. This has made us a partner our customers know they can trust. Our passion for quality has also enabled us to maintain consistent growth and maximize returns for our shareholders.

The customer service bases for SPIL include Taiwan, China, and the United States. Currently, there are several production centres in Taiwan and China. In recent years, in response to customer demand, production bases have been continuously expanded, including Taiwan and Malaysia. Production bases are to be increased in 2025.


For media enquiries:

Ms. Noor Suziyanti Saad,
Director, Electrical & Electronics Division
E: suziyanti@mida.gov.my
Tel.: +603-2267 3575

Invest Penang
Elaine Cheah / Arief Ferdaus
Communication & Business Intelligence
E: elaine@investpenang.gov.my / arief@investpenang.gov.my
Tel.: +604-646 8833

Mr. Jay Huang
Financial Director and Spoke Person
E. jayhuang@spil.com.tw
Tel.: +886-975-189-716