PEN SJ to invest RM300mil in Penang advanced packaging plant, create 1,000 jobs

PEN SJ Electronics Sdn Bhd is investing over RM300 million to construct an advanced packaging facility in Penang's Batu Kawan Industrial Park 3. The company secured a lease for a 3.44-hectare site from Penang Development Corp, reinforcing Penang's role in the semiconductor supply chain. Phase 1 of the project, set to commence soon, will generate around 1,000 jobs, primarily high-skilled engineering roles in the materials sector of the semiconductor value chain.

The initial phase will focus on creating Thermal Interface Materials (TIM), particularly high-grade indium-based TIM1 materials. Subsequently, Phase 2 will expand operations to produce Integrated Heat Spreaders (IHS) for global and local clients. PEN SJ, a subsidiary of SJ Electronics, specializes in advanced packaging materials and thermal management solutions for high-performance processing chips.

The new plant aims to reduce supply chain lead times, cut warehousing and logistics expenses for partners, and bolster Penang's advanced packaging expertise. Chief Minister Chow Kon Yeow highlighted the significant global confidence in Penang as a manufacturing destination, attributing RM17.3 billion in approved manufacturing investments in the first half of 2026, with RM12.8 billion (74%) sourced from foreign direct investments.

The electrical and electronics sector contributed RM11.0 billion (63%) of Penang's total approved manufacturing investments during the period, accounting for 45% of Malaysia's overall export volume. Penang's E&E exports reached nearly RM500 billion, marking a 90% increase compared to the same period last year and constituting over 74% of the nation's E&E exports.