OFFICIAL OPENING OF THE GLOBALFOUNDRIES MALAYSIA OFFICE

SPEECH BY YAB TUAN CHOW KON YEOW

THE CHIEF MINISTER OF PENANG

OFFICIAL OPENING OF THE GLOBALFOUNDRIES MALAYSIA OFFICE

 

26 SEPTEMBER 2023
ONE PRECINCT, PENANG

 

Dato’ Seri Lee Kah Choon

Special Investment Advisor to Chief Minister of Penang

Dato’ Loo Lee Lian

CEO of Invest Penang

Mr. KC Ang

Chief Manufacturing Officer, GlobalFoundries,

Mr. Razif bin Abd Aziz,

Vice President - Business Services, Malaysia Digital Economy Corporation (MDEC)

Distinguished guests,

 

Members of the press,

 

Ladies and Gentlemen,

 

Good morning, everyone.

 

I am honoured to be here today for the official opening of GlobalFoundries Malaysia office. As one of the world’s top three largest semiconductor foundry companies, I am pleased that Penang has been chosen to be a key part of your global hub strategy to augment your global manufacturing footprint in Singapore, New York, USA, and Dresden, Germany. My heartiest congratulations to the Company and all who are involved in reaching this milestone today.

 

I understand that GlobalFoundries’ plans for the Penang office include the use of Industry 4.0 solutions to enhance manufacturing processes for greater efficiency and productivity. A key feature of this new office is the new state-of-the-art Factory Control Tower that will enable the team here to monitor key production processes, performance metrics, and tool uptime across all of GlobalFoundries’ global manufacturing sites. I am proud that the state of Penang will be the one providing your global teams the 24/7 round-the-clock support.

 

At a time when business and supply chain resiliency are key priorities, GlobalFoundries’ global manufacturing footprint sets the company ahead of the pack. Particularly, the Company’s emphasis on digital manufacturing also aligns with Penang’s goals and roadmap as we continue to anchor our position as the Silicon Valley of the East.

On top of the factory control tower, I also understand that this office will train employees in the use of AI and Machine Learning to further automate processes in semiconductor manufacturing. We look forward to that knowledge-sharing and skillset transfer for the 300 engineers and technicians that your office will hire.

 

Ladies & Gentlemen,

 

The semiconductor industry has experienced immense growth over the last few decades. Mega trends such as the electrification of cars, adoption of 5G, Artificial Intelligence, Internet of Things (IoT) and virtual reality have brought the semiconductor industry to the forefront. This was further elevated during the Covid-19 pandemic which saw the spike in demand for consumer electronics and digital services.

Despite short-term market supply disruptions and a softening of the consumer market after the heightened demand we saw during the Covid environment, the overall outlook for the semiconductor industry remains positive. It is poised to grow to a US$1 trillion industry by 2030.

More importantly, semiconductor manufacturing is among the most complex and sophisticated manufacturing processes in the world. Home to a thriving ecosystem of semiconductor players, Penang is often lauded for our areas of expertise along this value chain.

Despite being the second smallest state in Malaysia, Penang has been making a name for itself, commanded over 5 percent of the global semiconductor sales. In terms of approved manufacturing investments, Penang recorded RM13.7 billion investments in 2022, of which 42 percent were contributed by the Electrical & Electronics (E&E) sector. In January till March 2023, Penang garnered RM828 million of approved manufacturing investments in E&E that represented 40 percent of the country’s total in the corresponding period.

On the trade front, Penang has also demonstrated our significance in the E&E sector by constantly contributing between 55 – 60 percent of the country’s E&E exports over the past five years. In 2022, Penang reached the all-time high of RM463 billion in total exports, and notably, E&E represented 74 percent of the total.

Ladies & Gentlemen,

Advanced manufacturing has grown in importance over the past few decades. The electronics sector has undergone radical transformation especially with Industry 4.0, and the recent paradigm shifts to the way global businesses operate. We hear of friend-shoring, on-shoring and near-shoring now.

Banking on our five decades of industrial excellence, Penang is making steady progress in cementing her position as the Silicon Valley of the East. As more businesses respond to the changing global situation, it is important that Penang continues to provide services that elevate us along the value chain.

Our talent remains one of the key differentiators for Penang, along with the availability of future-proof infrastructure and robust industrial network. The state, via InvestPenang, strives to provide steadfast support and facilitation to all investors so that we continue to strengthen our position and relevance as a location for global businesses to set up their offices here.

In closing, I wish to, once again congratulate Global Foundries on this significant investment in Penang and Malaysia. I wish the Company continuous growth and success and look forward to reinforcing this close partnership between the state and GlobalFoundries for many years to come.

Thank you.