LAM MANUFACTURING MALAYSIA ROOF TOPPING OUT CEREMONY
SPEECH BY CHIEF MINISTER OF PENANG
AT LAM MANUFACTURING MALAYSIA ROOF
TOPPING OUT CEREMONY, BKIP
8 March 2021
Dato’ Seri Lee Kah Choon
Special Investment Advisor to Chief Minister of Penang
Dato' Loo Lee Lian
CEO of InvestPenang
Puan Yusni Binti Md. Yusop
Director of MIDA Penang
Mr. Mike Snell
Corporate Vice President of Manufacturing, LAM Research
Ms. Soon Kuek
General Manager of Lam Manufacturing Malaysia
Distinguished guests
The members of the Lam Research family and members of the media
Good morning.
It is an honour to be here this morning to witness Lam Research Malaysia Roof Topping Out ceremony. I wish to congratulate Lam Research for reaching this milestone today and thanks to the event organizers for making this virtual event possible.
Ladies and gentlemen,
True to its reputation as the Silicon Valley of the East, Penang is the most important manufacturing base for electrical and electronic (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% of global semiconductor exports in 2019.
Lam Research’s investment in Penang is an achievement to behold as they are the first wafer fabrication equipment maker to have 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 localization, technical workforce skillset to economic spill-over effects.
We can expect 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 E&E ecosystem in the State.
In terms of supply chain localization, InvestPenang is engaging Lam Research for a “Supplier Day” to explore and understand more about the capabilities of the local industry players. I believe localization of supply chain could create a win-win situation. Lam Research may benefit from cost and time-to-market perspectives while the local players would have a chance to penetrate into the value chain of front-end equipment industry.
As you are aware, Penang is already home to a host of renowned global equipment manufacturers of back-end processes. I am confident that the addition of Lam Research will transform Penang into a regional, if not global, front-to-back end E&E equipment manufacturing hub.
On this encouraging note, I am pleased to share that Penang garnered approved manufacturing investments of RM14.1 billion in 2020, the second highest in history, with 75% contributed by FDI. The State government is grateful to achieve such a commendable investment performance despite a challenging year. 2020’s investment achievement reflects investors’ continued confidence in Penang as a sustainable investment location.
In 2020, the approved manufacturing investments in Penang were primarily related to the State’s key promoted industries, namely, E&E, Machinery & Equipment and medical devices industries. Cumulatively, investments into these sectors accounted for 89% of Penang’s total manufacturing investments in 2020, which in turn, accounted for 50% of Malaysia’s investments in these three sectors. This demonstrated Penang’s instrumental role in driving Malaysia’s participation in the global supply chain in these areas.
Ladies and gentlemen,
Aside from the State’s robust supply chain, good infrastructure and conducive living environment, talent is equally imperative in attracting high-quality investments. With such strategic investment from Lam Research, talents are not only offered job opportunities but also the chance to gain the technical know-hows from the global leader in wafer fabrication equipment. This would further anchor Penang as the talent magnet in the northern region.
Again, I would like to congratulate Lam Research for this outstanding milestone. Through InvestPenang, the State government is fully committed to provide our best possible facilitation service for Lam Research’s expansion project here. I look forward to deepening the partnership between Lam Research and the Penang State government, and, I wish Lam Research every success.
Thank you.