GEORGE TOWN: US-based Ultra Clean Holdings Inc (UCT) today announced its expansion into Malaysia with the setting up of a manufacturing facility in the Batu Kawan Industrial Park, in Penang.
Construction of UCT's 340,000 sq ft facility is expected to begin by the end of this year.
The new facility will create more than 650 jobs over the next five years, including roles in manufacturing, engineering, research and development as well as quality management.
The company's new facility will be its latest addition to the existing sites in the US, Singapore, China, Czech Republic and the Philippines.
In welcoming UCT's announcement in the US earlier today, chief minister Chow Kon Yeow expressed the state government's deepest appreciation to UCT for choosing Penang for this latest expansion.
"Undoubtedly, UCT's strategic investment is a testament of Penang having gained momentum in attracting investments from leading players in the front-end global supply chain.
"This is a milestone in Penang's industry transformation journey and evidence of how major strategic investments translate into technology and economic spillovers.
"With Penang's robust ecosystem in back-end equipment and automation areas, the addition of front-end equipment supply chain would power Penang further to serve the industry's end-to-end needs," he told newsmen in his office in Komtar this morning.
Present were Deputy chief minister II Professor Dr P Ramasamy, state Domestic and International Trade Committee chairman Datuk Abdul Halim Hussain, special investment advisor to the Penang chief minister Datuk Seri Lee Kah Choon and InvestPenang chief executive officer Datuk Loo Lee Lian.
Meanwhile, Loo said Penang is excited for UCT to come to the state.
"We have been working together with them for the past two years.
"Despite the global Covid-19 pandemic, the state is still able to attract such high-tech and new investments," she added.
Asked on the total investment to be pumped in by the company, Loo said the company had requested confidentiality.
UCT is a major industry player in the fluid delivery critical subsystem within the semiconductor supply chain, which supplies to the wafer fabrication equipment (WFE) players.
UCT is ranked among the top 10 suppliers of critical subsystems to the semiconductor and related manufacturing industries last year, with a total critical subsystems revenue estimated at US$11 billion.
On the industry outlook, according to Semiconductor Equipment and Materials International or SEMI, a global industry association that represents the electronics manufacturing and design supply chain, global semiconductor equipment sales by original equipment manufacturers is estimated to increase six per cent to US$63.2 billion this year and US$70 billion next year.