TF-AMD expands presence in Malaysia with new manufacturing site in Penang

by AUFA MARDHIAH / pic courtesy of Mida

TF-AMD Microelectronics Sdn Bhd has announced the expansion plan for its Penang manufacturing facility involving a second site construction at Batu Kawan Industrial Park, Penang, with almost RM2 billion capital investment.

The new manufacturing facility is expected to create more than 3,000 new jobs in advanced semiconductor engineering, design and process technologies for high-performance computing solutions.

Penang Chief Minister Chow Kon Yeow said that TF-AMD’s expansion has greatly demonstrated the conduciveness of Penang’s business environment, buoyed by its resilient supply chain, excellent infrastructure and future-proof talent pool.

“With TF-AMD’s wealth of knowledge and experience in the electrical and electronics (E&E) industry, I’m confident that this strategic expansion plan will provide immense opportunities for local talent development in high-performance computing solutions,” he said.

He also informed that via Invest-in-Penang Bhd and other relevant state agencies, the state is committed to outpace investors’ expectations by providing continuous facilitation throughout this expansion project; and looks forward to another 50 strong years with TF-AMD.

Meanwhile, Malaysian Investment Development Authority CEO Datuk Arham Abdul Rahman informed that TF-AMD has been instrumental in the enormous growth of the local semiconductor ecosystem (one of the Samurai 8 that drove the industrialisation of Silicon Valley of the East in Malaysia).

“We are excited to know that the establishment of the manufacturing plant will also create opportunities for local companies through the vendor development programmes.

“This includes targeting to employ more than 3,000 additional employees predominantly from the science and technical background and develop local vendors within the next five years in the areas of IR4.0, automation and engineering services,” he added.

In addition, he also believes that Malaysia will continue to be the investment destination for high-value manufacturing and global services in Asia.

“Foreign investors’ confidence in Malaysia continues to grow because the nation is a haven for one of the most comprehensive ecosystems in the region — the E&E and machinery and equipment industries — in turn, making the country the preferred single largest site for offshore semiconductor firms, like TF-AMD,” he concluded.

Meanwhile, Tong Fu Microelectronics Co Ltd chairman Shi Ming Da highlighted that Malaysia is endowed with an outstanding geographic location, a good business environment, and a diligent and sincere workforce and these are the key that strengthens investors’ confidence for continued investment in Malaysia.

“TF-AMD has experienced growth momentum in the semiconductor industry to become one of the world’s best assembly and test service providers for high-end processors. At this meaningful moment, TF-AMD is embarking on a new chapter and will be ready to make a giant leap forward.

“TF-AMD is fully committed to pioneering the advanced assembly and packaging business in the semiconductor industry and building an even more glorious future,” he said.

On the same note, TF-AMD MD Neoh Soon Ee added that the expansion plan marks the beginning of a new chapter in TF-AMD’s continued pursuit in providing excellent support to its customers with differentiated high-value engineering solutions.

“The new facility, spanning 1.5 million sq ft and occupying approximately 14 acres (5.67ha), will manufacture advanced integrated circuit technology and is expected to be completed in 2023. Once completed, the facility will bring TF-AMD’s total manufacturing capacity to over 2.3 million sq ft,” he said.

Advanced Micro Devices Inc (AMD) Executive VP, CFO and treasurer Datuk Devinder Kumar said AMD is pleased with the expansion plan for assembly, testing and packaging services and with the joint venture with TF-AMD which will further increase the capacity and supply to support AMD’s future growth.

“Penang has played a critical role in assembly and test operations for AMD and TF-AMD for more than 50 years and we are pleased to mark another important milestone in our long-standing business presence in Penang and Malaysia,” he said.