In a boost to Malaysia’s ranking as one of the top semiconductor exporters in the world, South Korea-based semiconductor testing specialist K-Test Co Ltd has yesterday broken ground on a RM205 million (US$ 50 million) manufacturing plant in Perak, Malaysia, marking its debut in Southeast Asia.
The plant will provide wafer and final testing services for memory, system and power semiconductors through its wholly-owned subsidiary K-Test Malaysia Sdn Bhd, the firm said in a statement. It is expected to be completed by February, 2027 creating about 100 jobs.
“Today’s event is a testament to K-Test’s reputation as a trusted provider of semiconductor testing services, supporting the global semiconductor industry with high standards of quality, precision and innovation. This project does not only demonstrate K-Test’s confidence in Perak’s long-term investment propositions, but also the thriving state of the manufacturing industry in Malaysia,” Loh Sze Yee, Perak executive councillor for tourism, industry, investment and corridor development, reportedly said at the groundbreaking ceremony.
InvestPerak acting chief executive officer Dr Ahmad Shahir Abdul Aziz reportedly said, “While Penang and Kulim continue to hog the limelight as Malaysia’s semiconductor powerhouses, Perak has been quietly building up its own position in the northern region’s chip supply chain. As global supply chains diversify and demand for semiconductor capacity continues to rise, the state is well positioned to play a significantly larger role in Malaysia’s semiconductor and E&E (electrical and electronic) growth story by leveraging its established capabilities in downstream processes such as semiconductor packaging and testing.”
Other attendees included Malaysian Investment Development Authority (Mida) Perak director Dyrul Syahrytz Mohd Daud, K-Test Malaysia chief executive officer Brandon Lee and representatives from state and federal agencies.
Malaysia is a global powerhouse in semiconductor back-end operations, capturing 13 per cent of the global market share in chip assembly, testing, and packaging (ATP) and ranking as the sixth-largest semiconductor exporter globally. The northern state of Penang has been a semiconductor ATP hub for decades often being nicknamed the “Silicon Valley of the East”. International chip giants like Intel, AMD, Infineon, and Micron are fixtures at the hub. The ATP hub footprint is expanding into Selangor state and now, Perak, a large state sitting between Penang and Selangor.
Last month, Malaysian Deputy Investment, Trade and Industry Minister Sim Tze Tzin had reportedly said at an industry event that Malaysia has the strongest semiconductor ecosystem in Southeast Asia, spanning the entire semiconductor value chain, including downstream suppliers, vendors, materials providers, machine makers, as well as advanced assembly and testing and equipment capabilities. As a result, the country attracts top technology players from Japan, South Korea, Taiwan, China and the US.