Taiwan's Chipbond Technology Launches $200M Advanced Semiconductor Facility in Penang, Boosting Malaysia's OSAT Ecosystem

Taiwan's Chipbond Technology Corporation has officially unveiled its new advanced manufacturing facility, Chipbond Technology Malaysia Sdn. Bhd., in Valdor Industrial Park, Batu Kawan, Penang.

The facility represents a landmark $200 million investment aimed at expanding Chipbond Technology's global footprint and ensuring stable supply chains for customers worldwide.

Advanced Capabilities and Initial Capacity

The plant specializes in cutting-edge processes including advanced wafer bumping, wafer-level chip-scale packaging (WLCSP), testing, and flip-chip packaging assembly.

It starts with an impressive initial capacity of 10,000 wafers and 100 million WLCSP units per month, offering flexibility for evolving technologies.

Strengthening Malaysia's Semiconductor Leadership

This development fortifies Malaysia's position in the global outsourced semiconductor assembly and test (OSAT) value chain, aligning with the National Semiconductor Strategy.

Malaysian Investment Development Authority CEO Sikh Shamsul Ibrahim hailed it for driving technology transfer, ecosystem expansion, and high-skilled job creation.

InvestPenang CEO Loo Lee Lian noted its role in accelerating Penang's transition to advanced packaging and innovation-driven growth.

Chipbond Technology Chairman Wu Fei Jain credited government support, customer partnerships, and team dedication for the rapid achievement.

Historical Foundation and Future Impact

Penang leverages over 50 years of industrialization and a mature OSAT ecosystem to attract such investments.

Internal qualification is set for completion by the end of 2025, with customer qualification starting in Q1 2026.

Structured university collaborations will upskill local talent, enabling meaningful participation of Malaysians and SMEs in global supply chains.

Overall, the facility promises long-term economic resilience, deeper integration, and elevated competitiveness for Malaysia's semiconductor sector.