GEORGE TOWN (Oct 7): PEN SJ Electronics Sdn Bhd has pledged to invest over US$70 million (RM286.1 million) to establish an advanced packaging materials and thermal management solutions facility in Penang, which is expected to create more than 1,000 jobs.
Chief Minister Chow Kon Yeow announced that the company has signed a lease agreement with the Penang Development Corporation (PDC) for a facility at the Batu Kawan Industrial Park 3 (BKIP3). This facility will produce thermal interface materials (TIM) during its first phase of operations.
He said the company will subsequently expand into the production of integrated heat spreaders in the second phase to serve both global and domestic customers.
“PEN SJ is a subsidiary of SJ Electronics, one of only a few manufacturers in the world and the sole company in China, capable of mass-producing high-end indium-based TIM1.
“This investment will further strengthen Penang’s electrical and electronics (E&E) ecosystem, particularly in advanced semiconductor packaging and thermal management. It will also reinforce our position as the Silicon Valley of the East,” he said at the PEN SJ-PDC lease agreement announcement here Wednesday.
SJ Electronics founder Dr Fay Hua said the company plans to hire more than 1,000 employees for its Penang operations, with many positions for engineers working on key technologies.
She said the company is focusing on technologies and materials required for advanced semiconductor packaging, including 2.5D and 3D packaging.
"The rapid advancement of artificial intelligence (AI) has increased the need for thermal materials to manage heat generated by semiconductor devices effectively,” she said.
The company also intends to collaborate with local higher education institutions through internship and graduate training programmes to develop skilled talent, particularly engineers for the industry.
Meanwhile, Chow said the state recorded RM17.3 billion in approved manufacturing investments in the first half of this year, of which RM12.8 billion or 74% were foreign direct investments, while the E&E sector contributed RM11 billion or 63%.
He said Penang recorded RM606 billion in exports from January to August, accounting for 45% of Malaysia’s total exports. Additionally, the state plans to attract strategic investments, empower local companies to participate alongside global players in the value chain, and build an AI-ready ecosystem and talent pool.
Uploaded by Magessan Varatharaja