South Korea’s K-Test Breaks Ground on RM205mil Perak Plant, Its First in Southeast Asia

South Korea-based semiconductor testing specialist K-Test Co Ltd has broken ground on a US$50mil (RM205mil) manufacturing facility in Perak — the group’s first plant in Southeast Asia — as it expands its global footprint to meet growing customer demand.

The facility, announced on 30 July 2026, will be operated by wholly owned subsidiary K-Test Malaysia Sdn Bhd and will provide wafer and final testing services for memory, system and power semiconductors. The project is expected to create about 100 jobs on completion, with knowledge transfer to local talent.

Based on a clean-room construction contract previously awarded by K-Test Malaysia, practical completion is targeted by 28 February 2027, paving the way for operations after equipment installation and customer qualification.

Perak steps out of Penang’s shadow

The groundbreaking was officiated by Perak executive councillor for tourism, industry, investment and corridor development Loh Sze Yee, joined by InvestPerak acting CEO Dr Ahmad Shahir Abdul Aziz, Mida Perak director Dyrul Syahrytz Mohd Daud and K-Test Malaysia CEO Brandon Lee.

Loh said the investment reflects K-Test’s confidence in Perak’s long-term proposition and Malaysia’s manufacturing ecosystem, citing the state’s cost advantages, infrastructure, government support and talent pool.

Ahmad Shahir was more pointed: "While Penang and Kulim continue to hog the limelight as Malaysia’s semiconductor powerhouses, Perak has been quietly building up its own position in the northern region’s chip supply chain." He said Perak is well positioned to take a larger role in Malaysia’s semiconductor and E&E growth story through its downstream strengths in packaging and testing.

The context supports him: Malaysia captures about 13% of the global market in chip assembly, testing and packaging (ATP) and ranks as the world’s sixth-largest semiconductor exporter. The ATP footprint that made Penang the "Silicon Valley of the East" has been spreading — into Selangor, and now Perak, the large state sitting between the two.

What it means for industrial property

• The northern corridor is widening. As Penang and Kulim industrial land tightens and prices climb, cost-sensitive back-end semiconductor players are looking one state south. K-Test is a US$50mil proof point that Perak can win this class of investment.

• Testing plants are property-intensive occupiers. Cleanrooms, stable power and a 2027 completion-then-qualification runway mean purpose-built facilities and long occupancy horizons — the profile of tenant and owner-occupier that anchors an industrial area for decades.

• Watch the supplier tail. OSAT plants pull in equipment vendors, materials suppliers and logistics players. First movers on nearby industrial land tend to benefit as the ecosystem forms.