Chipbond opens advanced semiconductor facility in Penang
Taiwanese semiconductor packaging and testing company Chipbond Technology has officially opened a new manufacturing facility in Penang, Malaysia, marking a major step in the company’s global expansion.
The facility, Chipbond Technology Malaysia Sdn. Bhd., is located in Valdor Industrial Park, Batu Kawan, and represents an investment of around USD 200 million (approximately MYR 800 million). Chipbond said the plant is intended to strengthen Malaysia’s position in the global outsourced semiconductor assembly and test (OSAT) value chain and support advanced semiconductor manufacturing in the region.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of the Malaysian Investment Development Authority (MIDA), described the facility in a press release as “a new investment that contributes to the expansion of Malaysia’s OSAT capacity and ecosystem while further strengthening the nation’s semiconductor competitiveness.”
He added that the plant would support technology transfer and local skills development through structured training programmes and collaborations with universities.
Chipbond Chairman Wu Fei Jain said the plant reflects the company’s commitment to expanding its global footprint and ensuring stable supply for customers.
The Penang facility will provide advanced semiconductor processes, including wafer bumping, wafer-level chip-scale packaging (WLCSP), and testing. Initial production capacity is planned at 10,000 wafers and 100 million WLCSP units per month. The plant is also equipped for flip-chip packaging and testing, providing flexibility for future technologies and customer requirements. Internal qualification is expected to finish by the end of 2025, with customer qualification set for the first quarter of 2026.
