PENANG continues to solidify its position as a global semiconductor powerhouse as Chief Minister Chow Kon Yeow led a visit to ASE Electronics Malaysia (Plant 4) to engage with a high-level delegation from Taiwan and explore future collaboration opportunities.
The visit brought together top management from Advanced Semiconductor Engineering, Inc. (ASE), representatives from the Taipei Economic and Cultural Office (TECO), InvestPenang, and key industry stakeholders, highlighting Penang’s growing role in the global semiconductor ecosystem.
Chow, who was warmly welcomed by ASE chief executive officer Dr Tien Wu and the company’s board of directors, described their presence as a testament to the enduring partnership between ASE and Penang.
“Your presence here reflects the strong and enduring partnership between ASE and Penang, and your continued investments play an important role in reinforcing Penang’s position as a global semiconductor hub,” he said earlier during a meeting and presentation briefing at the company in Bayan Lepas.
Chow noted that ASE’s journey in Penang began in 1991 with its first manufacturing facility outside Taiwan, and has since expanded significantly, growing its footprint more than threefold.
He added that the company’s plan to hire an additional 1,500 employees will further strengthen the local talent pool and create quality job opportunities.
“We hope this meeting will serve as a platform for open dialogue between ASE and the Penang government on how we can further align the company’s growth plans with the State’s broader development priorities,” he said.
Chow also highlighted ASE’s planned acquisition of Analog Devices’ Penang manufacturing facility, expected to be completed in the second quarter of 2026, alongside its commitment to invest RM3 billion in Malaysia over the next five years.
“These developments demonstrate ASE’s continued confidence in Malaysia as a strategic location for its global operations,” he added.
He further emphasised the importance of knowledge transfer from Taiwan, particularly in advanced packaging technologies, engineering capabilities and factory automation, which will elevate Penang’s semiconductor ecosystem.
The chief minister also shared an upcoming state initiative, the Penang ATE Campus, which InvestPenang will launch on April 24 to foster collaboration in advanced packaging, integrated device manufacturing, electronics manufacturing services and MedTech.
“We believe this platform can further strengthen collaboration between multinational companies and local ecosystem partners, and we look forward to ASE’s active participation,” he said.
In a related development, despite global uncertainties, Chow reaffirmed Penang’s strong investment fundamentals.
“The Penang government remains open to proactive collaborations to ensure Penang remains an attractive destination for global and domestic investors alike,” he said.
During the engagement session, Dr Wu outlined the global semiconductor landscape and emphasised that robotics and humanoids represent the next major technological wave.
“In the next five to 10 years, the biggest opportunity in the world will be robotics and humanoids,” he said, adding that future demand could see more robots than humans.
Dr Wu highlighted Taiwan’s dominance in AI data centre manufacturing, but pointed out that Malaysia, particularly Penang, holds a strong ecosystem for robotics-related semiconductor components.
“Most of the European, American and Japanese companies producing this technology are already located here. I believe 30 to 40 per cent of the robotics ecosystem is in Penang and Malaysia,” he said.
He stressed that Malaysia’s neutral geopolitical position and established semiconductor ecosystem make it an ideal base for future robotics manufacturing.
“What Penang can offer to us is a grand alliance and ecosystem,” he said.
Dr Wu revealed that ASE plans to expand its workforce in Penang from 3,000 to 5,000 employees following the acquisition of Analog Devices’ facility.
“We will build a compound capable of supporting the wave of humanoids if that day comes. I believe that day will come in five years,” he added.
He also emphasised the urgency of strengthening collaboration and talent mobility.
“We need to send Taiwanese engineers here on an accelerated basis to bring the latest technology and prepare for this paradigm shift,” he said.
Meanwhile, Taipei Economic and Cultural Office (TECO) representative Dr Lien Yu-Ping highlighted the strong economic ties between Taiwan and Malaysia.
“Taiwanese investors in Malaysia have created more than 47,000 jobs, and we have invested over US$3 billion in Penang’s high-end semiconductor packaging and testing industry,” she said.
She described the partnership between Malaysia and Taiwan as highly complementary.
“Together, we can create a win-win situation because we are so interconnected. We hope to deepen and institutionalise collaboration with the Penang government,” she added.
Separately, ASE Electronics Malaysia general manager Kelvin Liu reaffirmed the company’s commitment to Penang’s long-term growth.
“We have been operating in Penang since 1991, and today we have about 3,000 employees here. We aim to scale our advanced packaging technology, provide higher-skilled jobs and deepen our contributions to Penang’s economy,” he said.
Liu, who was born in Penang, expressed personal pride in contributing to the state’s development.
“As a Penangite, it is my ambition to expand the breadth and depth of technology at this site and work closely with the Penang State Government and InvestPenang for future growth and prosperity,” he said.
InvestPenang chief executive officer Datuk Loo Lee Lian, who was also present, held a presentation, showcasing Penang’s robust manufacturing and semiconductor ecosystem, underscoring the state’s readiness to support the next phase of global technology growth.
Story by Kevin Vimal
Pix by Siew Chia En