KUALA LUMPUR (Feb 18): Taiwanese semiconductor services firm ASE Technology Holding Co Ltd on Tuesday officially opened its fifth plant in Penang for chip packaging and testing.

The new plant will more than triple its floor space in Malaysia to about 3.4 million square feet, according to a statement. ASE, the world’s largest provider of outsourced semiconductor assembly and test services, said it will hire an additional 1,500 employees “over the next few years” for the plant.

“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,” said ASE chief executive officer Dr Tien Wu.

ASE’s plant in the Bayan Lepas Industrial Zone comes online at a time of rising demand for cutting-edge chips required for artificial intelligence and other advanced computing.

Penang is home to some of the largest global electrical and electronics companies, including semiconductor giants Intel and Infineon Technologies, as well as major manufacturers such as medical device maker B Braun and power tool company Bosch.

The new facility “further cements Penang’s position as a powerhouse in the global semiconductor landscape, reinforcing its reputation as the ‘Silicon Valley of the East’,” Penang Deputy Chief Minister II Jagdeep Singh Deo said in the joint statement.

For the Malaysian Investment Development Authority (Mida), ASE’s continued expansion in Penang underscores the long-standing partnership between Malaysia and Taiwan.

“These partnerships will not only drive demand for precision engineering, automation and semiconductor manufacturing, but they’ll also help our homegrown leaders,” said Mida deputy chief executive officer of investment promotion and facilitation Sivasuriyamoorthy Sundara Raja.