Penang:PEN SJ Electronics Sdn Bhd has announced its commitment to invest more than $70 million to establish a facility for advanced packaging materials and thermal management solutions in Penang. This investment is expected to generate over 1,000 jobs.
According to BERNAMA News Agency, Chief Minister Chow Kon Yeow revealed that PEN SJ Electronics has signed a lease agreement with the Penang Development Corporation for a facility at the Batu Kawan Industrial Park 3. The first phase of operations will focus on producing thermal interface materials.
The company intends to expand into producing integrated heat spreaders during the second phase, catering to both global and domestic markets. PEN SJ, a subsidiary of S J Electronics, is noted for being among the few manufacturers worldwide, and the only one in China, capable of mass-producing high-end indium-based thermal interface materials.
Chow emphasized that this investment will bolster Penang's electrical and electronics ecosystem, enhancing its reputation as the "Silicon Valley of the East." S J Electronics' founder, Dr. Fay Hua, mentioned the company plans to recruit over 1,000 employees in Penang, with a focus on engineers specializing in advanced semiconductor packaging technologies.
The company is concentrating on technologies and materials for advanced semiconductor packaging, such as 2.5D and 3D packaging, driven by the increasing demand from the rapid growth of artificial intelligence. Additionally, PEN SJ Electronics plans to collaborate with local educational institutions to develop skilled talent through internship and training programs.
Meanwhile, Chow highlighted that Penang recorded RM17.3 billion in approved manufacturing investments in the first half of the year, with foreign direct investments making up 74%, and the electrical and electronics sector contributing 63% of the total. Penang's exports from January to August reached RM606 billion, representing 45% of Malaysia's total exports. The state aims to attract strategic investments, empower local companies in the global value chain, and establish an AI-ready ecosystem and talent pool.