Key Findings
Unisem (M) Bhd and its subsidiary are allocating RM396 million to expand their semiconductor manufacturing plant in Gopeng, Perak. The investment is designed to capture increasing demand for advanced packaging used in artificial intelligence (AI), data centers, and high-performance computing.
Technical Details
The second phase of expansion focuses on increasing manufacturing capacity for wafer bumping and post-bump services. The project includes the following components:
- Infrastructure: Construction of a new production facility with a built-up area of approximately 40,000 sq m, costing an estimated RM196 million.
- Operational Allocation: Half of the new facility will be leased to Unisem Advanced Technologies Sdn Bhd, a wholly owned subsidiary, to expand wafer-bumping operations.
- Equipment: An additional RM200 million is allocated for necessary equipment and facility preparation works.
Background & Context
This project follows an earlier investment in the Gopeng facility that began construction in March 2022. The first phase, initially estimated at RM300 million, was intended to double the production capacity of existing operations in Ipoh. Chairman and group managing director John Chia Sin Tet stated in April that the group had invested RM600 million in the Gopeng plant as part of a nearly RM1 billion capital expenditure plan over three years.
Significance & Outlook
The expansion will be funded through a combination of bank borrowings and internally generated funds, though specific proportions are not yet determined. While the group does not expect the project to materially affect earnings for the current financial year, it is expected to contribute positively once operational. CIMB Securities noted in September that Gopeng Phase 2 could drive the company’s next leg of growth by supporting additional advanced packaging and wafer-bumping capacity. As of Friday’s midday break, Unisem shares were at RM4.36, representing a market capitalization of RM7.48 billion.
Source: https://theedgemalaysia.com/node/821171
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