ASE launches its fifth semiconductor packaging and testing plant in Penang
ASE has opened its fifth Penang plant as part of a wider expansion in semiconductor packaging, testing, factory automation and workforce development.
Fifth plant opens in Bayan Lepas
ASE has opened its fifth semiconductor packaging and testing plant in Penang, Malaysia. The facility is in the Bayan Lepas Free Industrial Zone. The company allocated RM4.5 billion to the development of its fourth and fifth plants, extending its manufacturing operations in the state.
The wider expansion is intended to increase ASE Malaysia's floor space from 1 million square feet to approximately 3.4 million square feet. Lee Kwai Mun, president of ASE's Southeast Asia operations, described continuing upgrades in factory automation and Industry 4.0 technology.
Automation and advanced packaging
Advanced Semiconductor Engineering, Inc. formally launched the fifth plant on 18 February 2025. ASE said the facility would strengthen its advanced packaging capabilities for applications including machine learning, enterprise AI, edge computing, electric vehicles and autonomous driving.
The company is using artificial intelligence and data analysis within its smart-manufacturing operations. Its announced applications include:
- detecting abnormalities using AI;
- analyzing manufacturing data to improve yield;
- optimizing production processes.
Workforce development
ASE Inc. chief executive Tien Wu linked the expansion to Southeast Asia's growing digital economy and demand for advanced chips. The company separately planned to add 1,500 employees over the following few years, alongside training and development associated with the expanded facility.
Lee said ASE employed more than 3,000 people in Malaysia. He expected that workforce to double when the fourth and fifth plants became fully operational in three to five years. His projection concerned the combined expansion; it was separate from the launch release's additional-hiring plan.
Expansion began with a two-building project
ASE held the groundbreaking ceremony for the fourth and fifth plants on 10 November 2022. The original project comprised two buildings with a planned built-up area of 982,000 square feet. The company scheduled completion for 2025 when it announced that construction program.
At the groundbreaking, ASE Malaysia planned to invest $300 million over five years in production space, advanced equipment and engineering talent. Copper-clip and image-sensor packaging were identified as core product areas. Those investment and product plans were set out in the November 2022 announcement.
Local industry cooperation
Malaysian Investment Development Authority deputy chief executive Sivasuriyamoorthy Sundara Raja encouraged local companies to explore cooperation with ASE in precision engineering, automation and semiconductor manufacturing. Penang Deputy Chief Minister II Jagdeep Singh Deo also attended the fifth plant's launch.
ASE Malaysia has served major semiconductor companies since 1991. At the 2022 groundbreaking, Lee described Penang's diverse, skilled workforce as an important factor in the investment decision, including the management knowledge and technical expertise required for the company's expansion.
Company and contacts
Advanced Semiconductor Engineering, Inc. (ASE), a member of ASE Technology Holding Co., Ltd.
Group public relations: +886-2-6636-5678.
Website: https://www.aseglobal.com/
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