Unisem Proposes $97 Million Expansion to Boost Wafer Bumping Capacity at Malaysia Plant

Unisem (M) Bhd has submitted a proposal to Bursa Malaysia for a second-phase expansion of its semiconductor production facility in Gopeng, Perak, with a total estimated cost of about USD 97 million.

The plan is designed to capture rising demand for advanced packaging used in artificial intelligence, data centres and high-performance computing applications.

How the USD 97 million investment breaks down

The proposal consists of two linked components.

The first is construction of a production facility with an aggregate built-up of 40,000sqm, complete with infrastructure and utilities, at an estimated cost of USD 48 million.

The second is facilitisation work, estimated at USD 49 million, which will be fully borne by Unisem's wholly-owned subsidiary Unisem Advanced Technologies Sdn Bhd (UAT).

Once construction is finished, Unisem will lease 50% of the new production facility to UAT, which will use the space to expand its wafer bumping operations. Together, the construction and facilitisation costs bring the total investment to approximately USD 97 million.

Demand for advanced packaging drives the move

In its filing, the group explained that the expansion is intended to meet growing demand for its wafer bumping and post-bump services.

"This expansion is part of the Group's strategic initiative to capture growing demand for advanced packaging, particularly in Artificial Intelligence (AI), data centres, and high-performance computing applications, and to position the Group for long-term growth," Unisem said in the announcement.

The statement positions the project as part of the company's broader effort to secure long-term growth by targeting advanced packaging, a segment increasingly tied to AI, data centre and high-performance computing workloads.

A second phase builds on existing Perak operations

The proposal represents the second phase of development at the Gopeng site, extending the semiconductor production operations Unisem already runs in Perak.

Under the planned arrangement, UAT is set to take up half of the new production facility upon completion, allowing the subsidiary to scale up its wafer bumping activities while carrying the full USD 49 million facilitisation cost itself.

Announcement lands amid wider Malaysian corporate activity

The filing arrives during a busy stretch of corporate news in Malaysia. Among other recent developments, Genting has proposed a USD 306 million rights issue aimed at reducing debt and boosting working capital.

Budget 2027 measures include support for semiconductor initiatives intended to help Malaysia move up the value chain, and Bank Negara has allocated an additional USD 1.2 billion for an SME relief facility.