TF-AMD to Build Second Manufacturing Facility in Malaysia

Article By : TF-AMD Microelectronics Sdn. Bhd

TF-AMD plans to expand its manufacturing facility in Malaysia with the construction of a second site at Batu Kawan Industrial Park, Penang.

TF-AMD Microelectronics Sdn. Bhd. recently announced plans to expand its manufacturing facility in Penang with the construction of a second site at Batu Kawan Industrial Park, Penang. With nearly RM2 billion of 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.

The strategic expansion builds on the significant investments TF-AMD has made in Malaysia over the past 50 years that will support the company’s continued growth.

“Penang is pleased to see TF-AMD, a prominent global player in high technology assembly and test, deepening its roots in the state. With a presence that spans half a century, 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,” Chief Minister of Penang, YAB Tuan Chow Kon Yeow said. “The State, via InvestPenang and other relevant state agencies, is committed to outpace investors’ expectations by providing continuous facilitation throughout this expansion project. Penang looks forward to another 50 strong years with TF-AMD.”

“As one of the key eight investors or famously known as “Samurai 8” that drove the industrialization of ‘Silicon Valley of the East in Malaysia’, TF-AMD has been instrumental in the enormous growth of the local semiconductor ecosystem. In the last five decades, TF-AMD has never ceased to consider Malaysia as part of its growth opportunity, investing across different parts of the semiconductor value chain. We are excited to know that the establishment of the manufacturing plant will also create opportunities for local companies through the vendor development programs. 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 (5) years in the areas of Industry 4.0, automation and engineering services,” said Datuk Arham Abdul Rahman, CEO of MIDA. “Malaysia continues 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 Electrical and Electronics (E&E) and Machinery and Equipment (M&E) industries, making the country as the preferred single largest site for offshore semiconductor firms, like TF-AMD. We aspire to see more companies emulate TF-AMD’s success story by raising their bar in terms of best practices and capabilities in the near future.”

“Malaysia is endowed with outstanding geographic location, good business environment, diligent and sincere workforce, which strengthens our confidence for continued investment in Malaysia. TF-AMD has growth momentum in the semiconductor industry in becoming 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 build an even more glorious future!” said TF-AMD Chairman Shi Ming Da.

The announcement took place at a celebratory event at TF-AMD’s Bayan Lepas facility in Penang.

Neoh Soon Ee, Managing Director, Corporate Vice President of TF-AMD, commented, “This is an exciting day for TF-AMD as it marks the beginning of a new chapter in our continued pursuit of providing excellent support to our customers with differentiated high-value engineering solutions. The new facility, spanning 1.5 million square feet and occupying approximately 14 acres, 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 square feet.”

“AMD has had outstanding growth in the last few years and TF-AMD has played a key role as a strategic supplier and partner in supporting our growth. We are pleased with the expansion plans for assembly, test and packaging services of our joint venture TF-AMD which will further increase the capacity and supply to support AMD’s future growth,” said Dato’ Devinder Kumar, Executive Vice President, CFO and Treasurer of AMD. “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.”


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