Malaysia has advantages in semiconductors, and Taiwan’s packaging, testing and equipment companies are raising their flags

2024/11/20

TechNewsTechnology News
November 18, 2024
Author MoneyDJ

Governments around the world are actively promoting the semiconductor manufacturing industry. Malaysia has been developing in this market for 50 years and has a sound infrastructure and supply chain. It is now a semiconductor center in Southeast Asia. In recent years, under the leadership of the government, it has attracted major international manufacturers. One after another, they have invested. Due to Malaysia's various advantages, many Taiwanese packaging and testing and equipment companies are also actively rushing in and setting up strongholds, hoping to seize the opportunity to win overseas orders.

Southeast Asia accounts for 27% of the global packaging and testing market, and Malaysia has become an important semiconductor packaging and testing supply chain cluster, accounting for nearly 13% of the global market share. At present, many IDM factories such as Micron, Infineon, NXP, TI and Intel have local packaging and testing bases, while ASE Technology Holding Co. Ltd., AmKor and China Huatian and Tongfuwei, both of which are affiliated with the company, have also established production bases. Among them, Intel and ASE have increased investment and expanded production locally.

ASE Technology Holding Co. Ltd. announced in November 2022 that it would invest US$300 million within five years to expand production plants and purchase advanced equipment in Malaysia. Among them, ASE’s Penang Factory 4 and Visitor Center were officially opened in January this year. Its main products are copper clip and image sensor (CIS) packaging mass production lines, and it will also lay out advanced packaging products.

In addition, Silicon Products’ factory in Bandar Cassia Technology Park, Penang, held a groundbreaking ceremony in May this year and plans to invest in advanced packaging and testing technologies and solutions. The group is also optimistic that after the addition of factories four and five in the future, the production space will double to 2 million square feet.

Semiconductor test interface solution manufacturer WinWay Technology also regards Malaysia as a key market. Since setting up a business and technical service center (WinWay Penang Service Center) in Penang, Malaysia in May last year, the regional management team has become more complete. It recently announced that it plans to establish The Malaysian subsidiary has strengthened its services to customers in Southeast Asia through in-depth development and strengthened its local service business and FAE engineering teams.

Equipment business partner Wolters Kluwer has established a subsidiary in Malaysia to be close to customers and provide after-sales services. It does not rule out the possibility of assembling and selling machines locally in the future. At present, in addition to entering the CoWoS supply chain, the company has also won the favor of major European IDM manufacturers and Taiwanese panel manufacturers in the FOPLP (fan-out panel level packaging) market. The legal person believes that as the business at home and abroad continues to expand, the follow-up momentum will continue to be promising.

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