Forehope Electronic, a Chinese provider of integrated circuit (IC) packaging and testing services, has announced plans to invest CNY2.1 billion (approximately USD300 million) in the construction of a new overseas manufacturing facility in Penang, Malaysia.

The new plant will focus on IC packaging and testing solutions for applications including Artificial Intelligence of Things (AIoT), power modules, and other advanced semiconductor segments. According to the company, the project is currently in the preliminary preparation stage, with details such as production capacity yet to be disclosed.

Penang is widely recognised as one of Southeast Asia’s most important semiconductor hubs, hosting operations from numerous international chipmakers and electronics manufacturers. Forehope said the location will allow it to leverage Malaysia’s mature semiconductor ecosystem, benefit from a strong industrial base, and deepen cooperation with overseas customers.

The investment forms part of Forehope Electronic’s broader strategy to expand its international footprint and strengthen its competitive position in the global IC packaging and testing market. By establishing production capacity closer to international clients, the company aims to improve service responsiveness, reduce supply-chain risk and capture growing demand outside China.

Forehope primarily provides outsourced semiconductor packaging and testing (OSAT) services to IC design companies, generating revenue through processing fees. In 2024, the company’s chip packaging volume surged 45% year-on-year to 5.19 billion units, highlighting strong demand for its services.

Overseas revenue reached CNY624.3 million (USD89.5 million) in 2024, accounting for 18% of total revenue, a sharp increase from just 7% in 2023. This rapid growth underscores the importance of international markets to Forehope’s long-term expansion strategy.

Following the announcement, shares of Forehope Electronic closed up 0.2% at CNY41.63 on the Shanghai Stock Exchange’s STAR Market. The stock has risen 28% since the end of last year, reaching its highest level since July 2023.

The Malaysia investment reflects a broader trend among Chinese semiconductor companies seeking to diversify manufacturing locations, mitigate geopolitical risks and strengthen access to global customers as demand for advanced packaging and testing services continues to grow.