Taiwan Chip Suppliers Expand into Malaysia With Taiwan+1 Push

Taiwan’s semiconductor supply chain is accelerating a “Taiwan+1” strategy as geopolitical tensions and surging demand for artificial-intelligence and high-performance computing chips raise the premium on production resilience. Penang, with its established electronics manufacturing ecosystem, skilled workforce and industrial infrastructure, is emerging as a preferred location for suppliers seeking overseas capacity while retaining Taiwan as their primary operating base.

Kangwo Technology is working with Chipbond Technology and other Taiwanese companies to establish operations in Penang, using rapid conversions of existing facilities to install cleanrooms and production lines. The project is intended to shorten setup times, support customers locally and create a second operating base outside Taiwan. The latest report did not disclose the planned investment, production capacity or a firm construction and commissioning timetable.