IJM Construction to build chip plants and a tower in Penang, Malaysia

The construction arm of Malaysian conglomerate IJM Corporation has won two contracts worth US$94m in the Malaysian state of Penang.

One is a $76m contract from ASE Electronics, the Malaysian subsidiary of Advanced Semiconductor Engineering, to build a chip assembly and testing facility (pictured) in the Bayan Lepas Free Industrial Zone.

IJM will build two plants, numbers four and five, across two phases.

The development will have a total built area of 982,000 sq ft, comprising a six-storey production floor space, office space, multi-storey car parks and a link bridge.

The project is due to be completed in 2025.

The other is an $18m contract to build a 45-storey commercial tower at Karpal Singh Drive in George Town for Malaysian real estate company Bionic Development. It will house offices, shops, residences and a parking podium.

Work on the tower is due to be completed in May 2026.

Liew Hau Seng, IJM Group’s managing director, said: “We are delighted that ASE has chosen IJM Construction to deliver their building expansion project, riding on the rapid growth witnessed by the semiconductor industry. The client has called for green construction methods that emphasise ecological balance, conservation and resource recycling and reuse to be adopted for the project.

“Despite continued economic uncertainty, the key markets in which IJM operates remain strong and with our continued policy of developing key strategic relationships with both our clients and supply chain, we are confident that the recent order book wins will place the company in a secure position for the future.”

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