PEN SJ Electronics pledges over US$70 million for Penang facility
The project is expected to create more than 1,000 jobs, with thermal interface materials planned for the first production phase.
PEN SJ Electronics Sdn Bhd has pledged an investment of over US$70 million for a facility in Penang producing advanced packaging materials and thermal management solutions. Chief Minister Chow Kon Yeow said the company had signed a lease with the Penang Development Corporation (PDC).
Located at Batu Kawan Industrial Park 3 (BKIP3), the facility will initially manufacture thermal interface materials (TIM). Chow said a second phase would add integrated heat spreaders, supplying customers in domestic and global markets.
S J Electronics founder Dr Fay Hua said the company plans to recruit more than 1,000 employees for its Penang operations. Many of the roles would be for engineers developing key technologies. PEN SJ is a subsidiary of S J Electronics.
Hua said the company's technology and materials focus includes advanced semiconductor packaging using 2.5D and 3D packaging. She linked growing demand for heat-management materials to advances in artificial intelligence (AI). The company also intends to work with local higher education institutions on internships and graduate training to develop skilled workers, particularly engineers.
Separately, Chow said Penang's approved manufacturing investments reached RM17.3 billion in the first half of 2026. Foreign direct investments represented 74 per cent, or RM12.8 billion, while electrical and electronics (E&E) accounted for 63 per cent, or RM11 billion.
Chow also reported exports of RM606 billion for Penang from January to August, representing 45 per cent of Malaysia's total. He said the state plans to attract strategic investments, support local companies' participation in global value chains and develop an AI-ready ecosystem and talent pool.
