KUALA LUMPUR, May 25 — Semiconductor packaging and testing company Siliconware Precision Industries Co Ltd (SPIL) on Friday broke ground on its RM6 billion P1 plant to be built on eight hectares in Bandar Cassia Technology Park, Penang.

The plant is projected to create nearly 3,000 skilled jobs, introduce advanced packaging and testing technologies such as wafer bumping, and offer a comprehensive turnkey solution over the next 15 years, said a joint statement issued by the Taiwan-based company, Malaysian Investment Development Authority (Mida) and InvestPenang.

"This initiative is expected to significantly reduce production cycles, enhancing efficiency and competitiveness in the semiconductor industry,” it said.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz 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.

He said the National Semiconductor Strategic Task Force has been driving many key initiatives to attract and implement investments in this sector, supported by Mida’s expertise built over more than half a century.

"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 small and medium-sized enterprises, 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,” the minister said.

Mida chief executive officer (CEO) Sikh Shamsul Ibrahim Sikh Abdul Majid said SPIL’s investment brings substantial advantages to Malaysia’s semiconductor industry.

"As one of the top 10 global outsourced semiconductor assembly and test companies, (SPIL) 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,” he said.

Sikh Shamsul said it will also 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.

Meanwhile, SPIL Malaysia CEO Michael Chang said 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.

Chang expressed gratitude to Mida and InvestPenang for their guidance throughout the project, which showcased the successful collaboration between central and local governments.

He also said 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,” he added.

SPIL is committed to environmental sustainability, having implemented multiple green manufacturing measures such as energy and water conservation as well as waste reduction during the construction stage.

It 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. — Bernama