Taiwan’s Chipbond Technology strengthens Malaysia’s advanced semiconductor ecosystem with $200M new Penang facility

Chipbond Technology Corporation, a Taiwan-based provider of semiconductor packaging and testing services, has on Monday marked the official opening of its new advanced manufacturing facility, Chipbond Technology Malaysia Sdn. Bhd., located in Valdor Industrial Park, Batu Kawan, Penang, Malaysia. The Malaysian Investment Development Authority (MIDA) said in a statement that the establishment of the facility represents a significant milestone in Chipbond’s global expansion strategy, with a total investment of close to $200 million. The Penang facility will offer advanced semiconductor processes, including advanced wafer bumping, wafer-level chip-scale packaging (WLCSP) and testing, with an initial capacity of 10,000 wafers and 100 million WLCSP unites per month. The plant is also equipped to support flip-chip packaging assembly and test, providing flexibility for future technology and customer requirements. Internal qualification of the facility is scheduled for completion by the end of 2025, with customer qualification commencing in the first quarter of 2026. The new plant strengthens Malaysia’s position within the global outsourced semiconductor assembly and test (OSAT) value chain, while reinforcing Malaysia’s role as a key hub for advanced semiconductor manufacturing. “This facility represents a new investment that contributes to the expansion of Malaysia’s OSAT capacity and ecosystem while further strengthening the nation’s semiconductor competitiveness, “It brings deeper integration, technology transfer, and the building of local capabilities that will benefit Malaysia’s semiconductor ecosystem for years to come,” said Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the MIDA, said, “Chipbond is bringing advanced OSAT expertise in wafer bumping and chip-scale packaging that requires highly skilled engineers. The firm’s commitment to structured training programmes and university collaborations will equip Malaysians with the skills needed for complex, high-value semiconductor production, “With companies like Chipbond anchoring advanced capabilities here, Malaysia is building an integrated semiconductor ecosystem where local talent and SMEs can participate meaningfully in global value chains,” he added. Meanwhile, Loo Lee Lian, Chief Executive Officer of InvestPenang, stated that backed by more than 50 years of industrialization and a strong foundation in outsourced semiconductor assembly and test (OSAT), Penang has built a mature ecosystem, a skilled talent base, and a conducive business environment. “Investments such as Chipbond’s are strategic in driving Penang’s shift towards advanced packaging and innovation-led growth and aligning with the National Semiconductor Strategy (NSS), “We look forward to seeing strong knowledge transfer, talent upskilling, and deeper collaboration, further strengthening Penang’s position as a regional hub for advanced semiconductor packaging,” she added. Wu Fei Jain, Chipbond Chairman also emphasized that this new facility represents Chipbond’s commitment in expanding our global footprint and assuring customers of stable and continuous supply. “Without the supports of Malaysia government, contributions of our customers and the tireless dedications of Chipbond teams, we would not be able to achieve this challenging goal within such a compressed time frame,” he added. The establishment of Chipbond Technology Malaysia Sdn. Bhd. underscores Malaysia’s continued attractiveness to global semiconductor players and highlights the country’s growing role in supporting resilient, high-value and innovation-driven semiconductor supply chains, said the statement. Penang opens shared lab for IC design validation & characterization to support Malaysia’s semiconductor ecosystem