TF-AMD Microelectronics Sdn Bhd has announced plans to expand its manufacturing facility in Penang, Malaysia, by building a second facility in Batu Kawan Industrial Park, Penang, with an investment of nearly RM2 billion.

Neoh Soon Ee, vice president and managing director of TF-AMD, said the new facility, which will cover 1.5 million square feet on approximately 14 acres, will produce advanced integrated circuit technology and is expected to be completed by 2023. Once completed, the facility will bring TF-AMD's total manufacturing capacity to more than 2.3 million square feet.

AMD has achieved outstanding growth over the past several years and TF-AMD has played a key role in supporting our growth as a strategic supplier and partner," said Dato' Devinder Kumar, executive vice president, chief financial officer and treasurer of AMD. The company is pleased with the expansion plans for the joint venture TF-AMD's assembly, test and packaging services, which will further increase capacity and supply to support AMD's future growth."

Previously, TF-AMD acquired two AMD facilities, AMD Suzhou (China) and AMD Penang (Malaysia), and on April 29, 2016, TF-AMD announced that the Company invested US$371 million to complete the closing of the acquisition of 85% of each of AMD Suzhou and AMD Penang.

As the controlling shareholder, Tongfomicro established an IC packaging and testing joint venture with AMD. The joint venture, named as Suzhou Tongfu Chaowei Semiconductor Co., Ltd. and trademarked as TF-AMD, TF-AMD aims to be one of the high-end processor assembly and testing service providers.

At that time, TF-AMD stated that the joint venture will continue to provide AMD with high quality advanced packaging and testing services as AMD's main packaging and testing supplier; at the same time, TF-AMD will leverage its own high quality customer resources and rich OSAT experience to help the joint venture provide advanced packaging and testing services to more customers outside of AMD with the help of the joint venture's mature high-end packaging and testing platform, and realize the transformation from an in-house packaging and testing facility to a global OSAT.