Advanced Semiconductor Engineering, Inc. (ASE), a provider of semiconductor manufacturing services in packaging and test, has officially launched its fifth plant in Penang, Malaysia. Accordingly, this will further strengthen the company’s packaging and testing capabilities with the new plant in the Bayan Lepas Free Industrial Zone.
The new plant is part of a strategic expansion plan that will expand the floor space of ASE’s Malaysia facility from its current area of 1 million square feet to approximately 3.4 million square feet.
The launch took place on Tuesday (Feb. 18) and ushered in a new era of smart manufacturing for ASE in Malaysia.

Significant Milestone

Over the years, ASE’s Malaysia site has been upgrading its manufacturing operations by integrating Industry 4.0 technology and factory automation solutions. Specifically, from the detection of abnormalities using AI, to improving yield and optimizing production processes through data analysis. Thus, the new plant harnesses the power of Artificial Intelligence of Things (AIoT) to enhance productivity and efficiency on the factory floor.
Speaking at the event, Penang Deputy Chief Minister II Yang Berhormat Jagdeep Singh Deo A/L Karpal Singh mentioned, “Backed by over fifty years of industrial excellence, Penang continues to be a premier investment destination for global industrial leaders seeking to expand in Southeast Asia.”
In addition, Deputy Chief Minister Karpal Singh said, “The establishment of ASE’s new chip packaging and testing facility marks a significant milestone, introducing cutting-edge technological capabilities to its decades-long operations in the state. This further cements Penang’s position as a powerhouse in the global semiconductor landscape, reinforcing its reputation as the ‘Silicon Valley of the East.’”
Meanwhile, Sivasuriyamoorthy Sundara Raja, Deputy Chief Executive Officer, Investment Promotion and Facilitation of MIDA, emphasized ASE’s contribution to Malaysia’s growing technological leadership. Specifically, Mr. Raja said, “ASE’s continued expansion here is a testament to the long-standing partnership between Malaysia and Taiwan. To stay ahead in this ever-changing and competitive field, it’s crucial for our businesses to keep innovating and team up with key industry players. That’s why I encourage our local companies to look at opportunities to collaborate with leaders like ASE. These partnerships will not only drive demand for precision engineering, automation, and semiconductor manufacturing, but they’ll also help our homegrown leaders.”

Strengthening ASE’s Global Footprint

Dr. Tien Wu, CEO of ASE Inc., also graced the event and hailed the facility as a critical step in strengthening ASE’s global footprint. “Southeast Asia is increasingly becoming an important base for semiconductors, given its growing digital economy propelling the demand for advanced chips and its shift towards design and chip manufacturing in recent years. With Malaysia solidifying its position as a regional semiconductor hub, we see our expanded facility playing an even greater role across the global semiconductor value chain and, contributing to the country’s economic growth. ASE remains committed to being a driving force for the development of the local and regional semiconductor industry, while continuing to meet and exceed the needs and expectations of our customers.”
With the semiconductor market on track to reach US$1 trillion in revenue in the next decade, OSAT manufacturing remains critical to the global electronics supply chain. As a leading OSAT player, ASE Malaysia has been serving major semiconductor companies since 1991.
The new plant comes online at a time when advanced AI chips are increasingly required across various next-gen applications in machine learning, enterprise-led AI use cases, edge computing, electric vehicles and autonomous driving, and more.