News briefing

As per Nikkei reports, Kinsus Interconnect Technology Corporation, a Taiwanese supplier for Nvidia and AMD, is contemplating setting up a substrate plant in Penang, Malaysia, and may collaborate with several other companies to hop on the bandwagon of semiconductor supply chains. Sources indicate that Kinsus has rented a plant in Penang and will begin testing and quality control of substrate production as early as Q2 of this year.

 

Impact analysis

Regarding previous efforts accumulated in the area of semiconductors in Malaysia, they have, to any extent, not been diminished by the surging manufacturers from Taiwan, South Korea, and mainland China. Especially in the field of packaging and testing, Malaysia remains an option for a diversified production base desired by major manufacturers such as ASE, Hua Tian, Amkor, Tongfu Microelectronics, and UTAC. These manufacturers have mostly concentrated their production sites in the western coastal states, particularly Penang.

IC substrates are closely related to packaging and testing factories. The cluster formed by packaging and testing in Malaysia enjoys a significant advantage, as these manufacturers consider substrate production as a priority. Aside from Ibiden, which invested in the country in the early days, AT&S, which has recently started investing, will also join the ranks of production in 2024. On the other hand, since Kinsus is also a world-renowned substrate manufacturing plant if its evaluation and planning can achieve good results with successful implementation, the production value of substrate in Malaysia can grow to a certain scale, along with the production capacity of Ibiden and AT&S, thus becoming a major player on the global map.