GEORGE TOWN, Aug 3 ― A leading wafer fabrication equipment company, Lam Research, officially opened its new manufacturing plant at Batu Kawan here today with an investment of RM1 billion.

The facility, which is the company's largest production facility, has an 800,000 sq ft built-up area.

Lam Manufacturing Malaysia general manager Soon K. Kuek said the initial plan was a 700,000 sq ft facility but they had expanded it and with this, they are also hiring more local employees.

"Early this year, we announced a commitment to hire about 350 workers but we have exceeded this number now and by the end of this year, we will have about 600 employees,” she said during the virtual opening of the facility.

She said the facility is a major manufacturing plant so they will be hiring production technicians, assemblers and operation-centric professionals such as in logistics and the supply chain.

She said Penang has the infrastructure and supply of knowledge-based workers to meet the company's requirements in setting up the new plant.

Meanwhile, Lam Research Corporation president and chief executive officer Tim Archer said the new plant gave the company confidence in its ability to continue to grow.

"A very large portion of our profits will be from this Malaysian facility and we have plans for a continuous strong partnership with the local supply chain,” he said.

He said the products manufactured at the plant in Penang will occupy an important portion of the company's total output and thus, the company's market share will rise to the majority of its output for the Asian region.

Penang Chief Minister Chow Kon Yeow, who also attended the virtual launch, said the new plant will integrate smoothly in Penang's semiconductor supply chain.

"The opening of this plant will further reinforce Penang's position as a preferred investment location and as the Silicon Valley of the East,” he said.

Lam Research is the first wafer fabrication equipment maker to set up their business operations with a manufacturing plant in Malaysia

In its announcement of financial results for the June 2021 quarter, Lam Research recorded more than 45 per cent revenue growth and an increase of over 70 per cent in earnings per share.

The company recorded a revenue of US$4.15 billion (RM17.53 billion) for the June 2021 quarter.

Archer said a combination of strong semiconductor demand and rising device complexity is driving higher levels of wafer fabrication equipment investment.

"Our technology differentiation and deep collaboration with customers position Lam to extend our leadership across all market segments,” he said.