Kulim Hi-Tech Park expansion to boost semiconductor sector

New Straits Times

21-05-2025

KULIM: The expansion of the Kulim Hi-Tech Park (KHTP) remains on track despite global uncertainties, including the reciprocal tariffs recently announced by United States President Donald Trump.
Kulim Technology Park Corporation Sdn Bhd (KTPC) group chief executive officer Datuk Mohd Sahil Zabidi said the developer of KHTP confirmed that the development of Industrial Zone Phase 5 of Malaysia's first and largest fully integrated science and technology park is progressing as planned.
"We wish to express our deepest appreciation to Prime Minister Datuk Seri Anwar Ibrahim, for approving the location and federal loan to fund this expansion. It is a tremendous boost in ensuring the sustainability of KHTP as a national initiative driving Malaysia's high-tech industry," he told the New Straits Times during an interview.
Sahil said that the continued development of KHTP is critical in supporting the government's National Semiconductor Strategy (NSS).
The NSS was launched in May 2024 to reinforce Malaysia's role in the global semiconductor supply chain.
It aims to enhance the value-added contribution of the manufacturing sector to the national gross domestic product (GDP), while also increasing the number of skilled workers and raising median wages in the sector, in line with the New Industrial Master Plan 2030.
"KHTP currently hosts four wafer fabrication manufacturers — Infineon, Osram, SilTerra and Fuji Electric — the highest number in any single industrial park in the country.
"The RM8.5 billion investment by Austrian chipboard manufacturer AT&S to produce high-end integrated circuit (IC) substrates represents a significant milestone for KHTP and completes our high-tech ecosystem.
"We are grateful for AT&S's commitment to contributing to the NSS by helping to develop a robust supporting industry. KTPC remains dedicated to building the necessary infrastructure to facilitate the growth of local vendors and suppliers in line with national goals," Sahil said.
He added that the ongoing development of 11 industrial lots under Phase 4A is expected to be completed by October this year.
"We have already secured one tenant and construction of their plant is underway. Negotiations with two additional potential investors are ongoing, and we anticipate finalising those deals by the end of this month. We are confident that all 11 lots will be fully taken up by next year," he said.
Regarding the next phase of expansion, Sahil said KTPC has signed an agreement with the landowner to acquire 190ha of adjacent oil palm plantation land for Phase 5, with physical works scheduled to commence next year.
"If all goes according to plan, we expect to begin marketing the Phase 5 lots by 2027. This expansion is vital to sustain KHTP's momentum for the next seven to ten years," he said.
Since its establishment 30 years ago, KHTP has attracted a total of RM181.5 billion in investments and is currently home to 56 manufacturers, including more than 20 multinational corporations from 12 countries, supported by 90 ancillary companies.
At present, KHTP employs approximately 45,000 workers, 95 per cent of whom are skilled local talents.
"Alhamdulillah, we have successfully met the mandates and objectives of this national project.
We are humbled to have received the Best Employer Award (Big company /GLC), presented by the prime minister during the national-level Labour Day celebration earlier this month.