Chipbond Technology strengthens Malaysia’s advanced semiconductor ecosystem with new Penang facility

• New Penang facility to deliver advanced wafer bumping and chip-scale packaging
• Chipbond’s US$200 mil investment strengthens Malaysia’s advanced OSAT capabilities

Chipbond Technology Corporation, a leading global provider of semiconductor packaging and testing services, has marked the official opening of its new advanced manufacturing facility, Chipbond Technology Malaysia Sdn. Bhd., located in Valdor Industrial Park, Batu Kawan, Penang, Malaysia.

The facility represents a key milestone in Chipbond’s global expansion, with a total investment of close to US$200 million (approximately RM800 million). The new plant strengthens Malaysia’s position in the global outsourced semiconductor assembly and test (OSAT) value chain, while reinforcing the country’s role as a hub for advanced semiconductor manufacturing.

Highlighting the broader impact, Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of the Malaysian Investment Development Authority (MIDA), said, “This investment expands Malaysia’s OSAT capacity and strengthens the nation’s semiconductor competitiveness. It brings deeper integration, technology transfer, and the development of local capabilities that will benefit the ecosystem for years to come.

“Chipbond is introducing advanced wafer bumping and chip-scale packaging that require highly skilled engineers. Its commitment to structured training and university collaboration will equip Malaysians with the skills needed for complex, high-value semiconductor production, while enabling local talent and SMEs to participate in global value chains.”

Meanwhile, Loo Lee Lian, CEO of InvestPenang, representing Chief Minister Chow Kon Yeow, said, “Backed by more than 50 years of industrialisation and a strong OSAT foundation, Penang has built a mature ecosystem, skilled talent base, and conducive business environment. Investments such as Chipbond’s will help drive the state’s shift towards advanced packaging and innovation-led growth, in line with the National Semiconductor Strategy.”

“We look forward to deeper collaboration, knowledge transfer, and talent upskilling, further strengthening Penang’s position as a regional hub for advanced semiconductor packaging,” she added.

Wu Fei Jain, Chipbond chairman, said, “This new facility reflects our commitment to expanding our global footprint and assuring customers of stable, continuous supply. Without the support of the Malaysian government, our customers, and the dedication of our teams, we would not have achieved this goal within such a compressed timeframe.”

The Penang facility will offer advanced processes including wafer bumping, wafer-level chip-scale packaging (WLCSP), and testing, with an initial capacity of 10,000 wafers and 100 million WLCSP units per month. The plant is also equipped to support flip-chip assembly and test, providing flexibility for future technologies and customer requirements. Internal qualification is scheduled for completion by the end of 2025, with customer qualification beginning in the first quarter of 2026.

The establishment of Chipbond Technology Malaysia underscores the country’s growing role in advanced packaging and its continued appeal as a strategic hub for global semiconductor investments.