BATU KAWAN – Lam Research Corporation’s entry into the manufacturing scene in Penang is a major achievement for the Silicon Valley player as the company overcame the pandemic to launch its production facilities at the industrial zone here.
Based in Fremont, California, the company first gained prominence here in 2019 when Chief Minister Chow Kon Yeow announced that it had chosen Penang over several other global locations to enhance its manufacturing outreach.
Lam produces semiconductor components and wafer fabrication equipment, and is listed on the Nasdaq bourse.
Little did Chow know then that the Covid-19 pandemic would paralyse many global businesses a few months later, including in Penang, which has suffered an average of 1,500 new infections daily over the past week.
Chow recently praised Lam for its tenacity and commitment to follow through on the investment despite the challenges posed by the virus.
Lam’s facility at Batu Kawan, also known as Lam Research International Sdn Bhd, was initially planned for a built-up area of 700,000 sq ft. However, it has now expanded to more than 800,000 sq ft to meet rising demand.
In addition, the company has expanded initial hiring projections from 350 to over 600 employees by year-end to support its growth
The facilities’ launch also marks the commitment by InvestPenang and local contractors to apply design innovation, and how construction went on despite some delays.
Lam’s entry consolidates Penang’s role as a player in the global supply chain for semiconductors and the digital industry.
It underlines that not only can the state still compete with other locations worldwide, it is also now on a new threshold towards research and development, beyond just manufacturing.
Datuk Seri Lee Kah Choon, InvestPenang’s special investment advisor to the chief minister,said that Lam’s entry came at a point when US-China relations had worsened, forcing many manufacturers to seek new locations to export their electronics.
Penang driving exports, especially electronics, electrical
At a recent webinar in conjunction with Lam’s entry, Chow had said that 42% of Penang’s approved manufacturing foreign direct investments from 2019 to 2020 came from US companies, and hailed Lam as one of these strategic projects.
“Lam Research’s significant investment in Batu Kawan reinforces Penang’s position as a preferred location for advanced manufacturing and upholding our accolade as the ‘Silicon Valley of the East’,” he told his online audience.
Attendees included US ambassador to Malaysia Brian D. McFeeters, Lam Research president and CEO Tim Archer; Penang-born Soon K. Kuek, the general manager of Lam Research International Sdn Bhd; and Mike Snell, the company’s corporate vice-president (manufacturing).
On the trade front, Penang continues to play a substantial role in driving the country’s exports. The state recorded exports totalling RM310 billion in 2020, representing 32% of Malaysia’s total exports, he added.
“Importantly, 60% of Penang’s exports were electronics and electrical products. Our performance continued to gain momentum with exports increasing by 23% year-on-year to RM138 billion in January-May 2021,” Chow said.
Soon noted that the new facility, located over 34 acres, was successfully put up within months.
"Going abroad to invest in another location is a necessity these days, and not a luxury,” she said. “Companies like Lam leverage on a global presence for a variety of reasons, including to expand our global footprint, improve speed to solutions by being closer to customers and suppliers, and ensure business continuity for critical activities.”
She thanked InvestPenang and the Malaysian Industrial Development Authority for supporting Lam in mitigating the effects of Covid-19. – The Vibes, September 3, 2021
