GEORGE TOWN, March 8 — Lam Research Corporation is set to start operations of its new RM1 billion facility in Penang to serve as its Asian hub by the second half of 2021.

The facility is expected to be the company’s largest production facility, with a 700,000 sq ft built-up area when completed.

The facility, which will feature a highly advanced production line with the latest automation capabilities, will also be hiring about 350 employees by the end of the year.

Penang Chief Minister Chow Kon Yeow, who witnessed the virtual Lam Research Malaysia roof topping out ceremony today, said Lam Research is the first wafer fabrication equipment maker to set up their business operations with a manufacturing plant in Malaysia.


“Being one of the eminent leaders in semiconductor capital equipment, Lam Research’s presence is expected to bring far-reaching impacts to Penang in many aspects, from supply chain localisation, technical workforce skillset to economic spillover effects,” he said in his speech during the ceremony.

He said the state expects an immense chain reaction among semiconductor-related players to explore Penang as a viable option to set up their operations here, which will further enhance the already-comprehensive and robust electronics and electrical (E&E) ecosystem in the state.

Chow said Penang continues to be an important manufacturing base for E&E products within Malaysia and is among the most vibrant hubs in the region.


“According to statistics compiled from the Department of Statistics Malaysia (DOSM) and UN Comtrade, Penang accounted for an estimated 5 per cent of global semiconductor exports in 2019,” he said.

Lam Research corporate vice president of manufacturing Mike Snell said Lam Manufacturing Malaysia will serve as the company’s Asia manufacturing hub and will play a critical role in supporting the growing customer demand for their equipment.

“This new site will be an advanced manufacturing facility with the flexibility for expansion of our operations when needed,” he said.

Lam Manufacturing Malaysia general manager Soon Kuek said the company is working with partners to ensure a significant percentage of the components are locally sourced to contribute to the region’s economy.

Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry.