TAIPEI (Taiwan News) — Advanced Semiconductor Engineering Inc. (ASE) held an inauguration ceremony for its fifth plant in Penang, Malaysia, on Tuesday.

The company invested US$300 million (NT$9.6 billion) in the facility, which will expand packaging and testing capacity in the Bayan Lepas Free Industrial Zone, per UDN. ASE also announced plans to hire an additional 1,500 employees over the next few years.

ASE CEO Wu Tien-yu (吳田玉) said in a speech that the new plant marks a significant step in strengthening the company’s global presence, per CNA. With rising demand for advanced chips, Southeast Asia is emerging as a key semiconductor hub.

Wu added that Malaysia is solidifying its role as a regional semiconductor center, and ASE’s expansion in Penang will enhance its position in the global semiconductor supply chain.

ASE Southeast Asia President Lee Kwai Mun noted that Penang has been developing its semiconductor industry for over 40 years. With the completion of this facility, ASE’s total operational area in Malaysia has expanded from 1 million to approximately 3.4 million square feet.

Penang is home to some of the world’s leading electronics and semiconductor firms, including Intel and Infineon Technologies, per The Edge Malaysia. The state hosts over 350 multinational corporations and 4,000 small and medium-sized enterprises, making it a major hub for the industry.