PEN S J Electronics Sdn Bhd (PEN S J), a leading provider of critical advanced packaging materials and thermal management solutions for high-performance processing chips, is set to establish a new facility at the Batu Kawan Industrial Park 3 (BKIP 3), marking another significant addition to Penang’s growing advanced semiconductor ecosystem.
The company has officially entered into a lease agreement with the Penang Development Corporation (PDC) to develop the new advanced packaging materials and thermal management solutions facility, with an investment of more than US$70 million (about RM300 million).
The project underscores PEN S J’s continued commitment to expanding advanced semiconductor manufacturing capabilities in Malaysia while contributing towards greater resilience in the global semiconductor supply chain.
The new facility will be developed in two phases and, upon completion, is expected to serve both global and local customers, strengthen the local semiconductor ecosystem and create long-term growth opportunities for the company.
The lease agreement was announced during a ceremony held at Komtar today, attended by Chief Minister Chow Kon Yeow, Penang Trade and National Unity Committee chairman Goh Choon Aik, InvestPenang chief executive officer Datuk Seri Loo Lee Lian, PDC deputy chief executive officer Datuk Mohammad Azhar Hamdan, S J Electronics founder Dr Fay Hua and PEN S J managing director Ooi Ing Chyuan.
In her speech, Dr Fay said the US$70 million investment would also create more than 1,000 job opportunities, with the majority expected to be engineering positions involving key technologies.
She said PEN S J would also work closely with local colleges by offering internship and graduate training programmes to help prepare young engineers for careers in the semiconductor industry.
“We want to build not just a facility, but also a strong talent pipeline. We hope to work together with local colleges to provide internships and graduate training so that we can prepare engineers for employment,” she said.
Dr Fay added that PEN S J also hoped to contribute to the Penang community and build meaningful, long-term partnerships with local stakeholders.
Meanwhile, Chow said Penang was honoured to have been selected as the location for the strategic investment as PEN S J expands its global manufacturing footprint.
“This reflects the company’s confidence in Penang as a trusted manufacturing destination, supported by a robust industrial ecosystem.
“This investment will further strengthen Penang’s electrical and electronics (E&E) ecosystem, particularly in advanced semiconductor packaging and thermal management, and reinforce our position as the Silicon Valley of the East,” he said.
Chow said Penang may be the second smallest state in Malaysia, but its size had never defined its ambition.
“In the first half of 2026, Penang once again led the nation in approved manufacturing investments, securing RM17.3 billion.
“Of this, RM12.8 billion, or 74 per cent, came from foreign direct investments, while the E&E sector contributed RM11 billion, or 63 per cent,” he said.
He said the state’s export performance painted a similar picture.
“From January to August 2026, Penang recorded RM606 billion in exports, accounting for 45 per cent of Malaysia’s total.
“Our E&E exports reached almost half a trillion ringgit, 90 per cent higher than the same period last year, and continue to account for more than 74 per cent of Malaysia’s E&E exports,” he said.
Chow also highlighted PEN S J’s phased production plans, saying the company would begin with the production of Thermal Interface Materials in Phase One before expanding into Integrated Heat Spreaders in Phase Two.
“The products are expected to serve customers both globally and locally, further strengthening Penang’s role in the semiconductor supply chain,” he said.
Chow also extended an invitation to PEN S J to be part of the Malaysia ATE Campus and to work alongside local companies in developing a stronger semiconductor ecosystem.
“When global and local players grow side by side, supply chains become stronger, and the value we create stays rooted in Penang for generations to come,” he said.
Chow assured PEN S J and other investors that the state government, together with its federal partners, would continue supporting their expansion and long-term growth.
“The Penang government, through PDC and InvestPenang, together with our federal partners, namely the Ministry of Investment, Trade and Industry (Miti), Malaysian Investment Development Authority (Mida) and Malaysia External Trade Development Corporation (Matrade), will continue to stand firmly behind your growth, today and in the years ahead,” he said.
Chow thanked PEN S J for choosing Penang and said he looked forward to writing many more success stories together.
Story by Riadz Akmal
Pix by Siti Nuratikah Rahmat
Video by Alissala Thian