LAM Research Corporation is expecting its new factory in the Batu Kawan Industrial Park to be ready in the middle of this year after a virtual Lam Manufacturing Malaysia Topping Out ceremony was conducted today.
Chief Minister Chow Kon Yeow, who launched the virtual topping out ceremony, congratulated Lam Research for reaching this milestone today.
The 700,000sq ft facility on a 34-acre site would hire 350 employees in three years.
“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 localisation, 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.
“Through InvestPenang, the state government is fully committed to providing 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,” Chow said in his address.
He said he was confident that Penang, home to a number of renowned global equipment manufacturers of back-end processes, would be transformed into a regional, if not global, front-to-backend E&E equipment manufacturing hub with the addition of Lam Research.
He added that with such strategic investment from Lam Research, talents were not only offered job opportunities but also the chance to gain the technical know-how from the global leader in wafer fabrication equipment.
Among others who took part in the virtual ceremony were Datuk Seri Lee Kah Choon, the special investment adviser to the chief minister, InvestPenang chief executive officer Datuk Loo Lee Lian, Malaysian Investment Development Authority (MIDA) Penang director Yusni Md Yusop, Lam Research corporate vice-president of manufacturing Mike Snell and Lam Manufacturing Malaysia (LMM) general manager Soon Kuek.
Snell said when it came to expansion, especially one that spans across the globe, various factors needed to be considered.
He said since Lam Research was founded in 1980 in Santa Clara, California, they have expanded globally with presence in 18 regions across North America, Europe, Middle East and Asia.
“Just last year, we celebrated our 40th anniversary and we are proud to say that nearly every advanced chip today has been built with a Lam technology.
“As Lam’s finished products are essentially shipped by air freight, factors such as transport and logistics are crucial when deciding the next expansion plan.
“In this regard, Malaysia, and more specifically Penang with its well-established infrastructure, was a major draw. Not only that, Penang offers a good balance of a strong logistic network, established supplier base and big supply of skills.
“Talking all these criteria into consideration, it is without a doubt that Penang serves as an ideal location for us to expand our global production footprint, and also serving as a hub for our operations in Asia,” Snell said.
Soon Kuek said the onset of the Covid-19 has brought forth many unexpected challenges to the construction progress of their facility.
“Despite this, I am happy and proud that the Lam team has managed to pull through and keep the progress on track. We’ll be ready by the middle of this year,” she said.
“Lam Manufacturing Malaysia, also known as LMN, will be a historical achievement for us as it will be our largest manufacturing facility for the entire Lam Research group upon its completion, featuring a size of 700,000sq ft.
“This site is being built with a flexibility to extend our operations and meet increasing demands from our customers.
“For our manufacturing facility to operate efficiently, having sufficient components and material supply is very crucial. To this note, we are happy to say that we are currently working with local partners to ensure a significant amount of our components are locally sourced here in Malaysia.
“And we believe this will greatly contribute to the local economy. Taking another step forward, selected local vendors will also be included into our vendor development programme where we will assist them with knowledge transfer as well as skills training and development.”
She added that LMM looked forward to collaborating with relevant partners to build interest among Malaysians into taking up courses in the STEM (Science, Technology, Engineering and Mathematics) that the state government has been promoting.
Story by K.H. Ong
Pix by Chan Kok Kuan