(Yicai) Jan. 13 -- Forehope Electronic said the Chinese integrated circuit packaging and testing services provider plans to build a new factory in Malaysia for CNY2.1 billion (USD300 million) to boost its overseas presence and consolidate its industry position.

The new plant will be located in Penang and produce products for Artificial Intelligence of Things, power modules, and other areas, Forehope Electronic announced late yesterday. The project is still in the preliminary preparation stage, it noted, without disclosing further details such as the production capacity.

Penang is an important hub for the semiconductor industry in Malaysia, with many international chip makers setting up operations there, Forehope Electronic noted. The factory would effectively leverage the local market environment and industrial foundation, deepen strategic ties with major overseas clients, and enhance the firm's global IC packaging and testing services market share, it added.

Forehope Electronic primarily provides packaging and testing solutions for IC designers, charging processing fees. Its chip packaging volume jumped 45 percent to 5.19 billion units in 2024 from the year before.

Revenue from overseas markets topped CNY624.3 million (USD89.5 million) in 2024, accounting for 18 percent of its total, up from 7 percent in 2023, according to its annual financial report.

Shares of Forehope Electronic [SHA: 688362] closed up 0.2 percent at CNY41.63 (USD5.97) apiece today. The Shanghai Stock Exchange Science and Technology Innovation Board Composite Index dropped 2.7 percent. The stock has surged 28 percent since the end of last year to its highest level since July 2023.

Editor: Martin Kadiev