Unisem (M) Bhd has proposed to undertake the second phase of expansion of its semiconductor production facility in Gopeng, Perak, in a move aimed at capturing growing demand for advanced packaging used in artificial intelligence, data centres and high-performance computing applications.

Scope and cost of the proposed expansion

In a filing with Bursa Malaysia, the group said the expansion includes the construction of a production facility with an aggregate built-up of 40,000sqm, complete with infrastructure and utilities, at an estimated cost of USD 48 million.

Following completion of the construction, Unisem will lease 50% of the production facility to its wholly-owned subsidiary Unisem Advanced Technologies Sdn Bhd (UAT) to expand its wafer bumping operations.

The associated facilitisation is estimated to cost USD 49 million and will be fully borne by UAT, bringing the total cost of the proposed construction to about USD 97 million.

Strategic rationale

The group said the expansion is intended to meet growing demand for its wafer bumping and post-bump services.

"This expansion is part of the Group's strategic initiative to capture growing demand for advanced packaging, particularly in Artificial Intelligence (AI), data centres, and high-performance computing applications, and to position the Group for long-term growth," it said in the filing.

What comes next

The proposal marks the second phase of development at the Gopeng facility, building on Unisem's existing semiconductor production operations in Perak.

With UAT set to take up half of the new production facility upon completion, the subsidiary's wafer bumping operations are expected to be expanded under the arrangement, with the full USD 49 million facilitisation cost carried by UAT itself.

The announcement comes amid a broader period of corporate activity in Malaysia, with other recent corporate news including Genting's proposed USD 306 million rights issue to pare down debt and boost working capital, Budget 2027 measures supporting semiconductor initiatives to help Malaysia move up the value chain, and Bank Negara allocating an additional USD 1.2 billion for an SME relief facility.

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