3REN targets growth in Penang’s semiconductor supply chain

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3REN and Penang semiconductor growth

Highlights

3REN recorded an order backlog of RM74 million as of 30 June 2026, up 30% from RM56.6 million, signaling strong demand from multinational customers.
The group is expanding into Singapore and targeting new opportunities with a Tier 1 fabless chipmaker, while exploring integrated circuit design.
One of its key customers is targeting a threefold increase in revenue by 2028, creating room for sustained growth at 3REN despite capacity and engineering talent challenges.

This article was translated from the original. Read the original version by our correspondent here.

Growth opportunities in automation and engineering

The Edge Malaysia reported that 3REN expects more opportunities as multinational companies expand their operations in Penang, boosting demand for automation equipment, product validation and engineering support over the next few years.

Chief Executive Officer Koh Dim Kuan said the group is involved in key components of the AI data center supply chain, including graphics processing units, central processing units, memory and power modules. He said the segment closest to contributing to growth is automation and digitalisation solutions, with 3REN supplying internally designed automated optical inspection equipment to a global EMS giant that manufactures power modules for data center server boards.

3REN operates across three complementary areas: automation and digitalisation solutions, product engineering services, and engineering support services. As of 30 June 2026, the company had an order backlog of RM74 million, up 30% from RM56.6 million a year earlier, reflecting stronger long-term relationships with multinational customers and a deeper understanding of their product and process requirements.

Regional expansion and capacity challenges

The company also plans to follow its customers beyond Malaysia, starting with Singapore, while preparing its engineers to support a Tier 1 fabless chipmaker whose validation process differs from that of its existing integrated device manufacturing customers. At the same time, the increasing complexity of semiconductor manufacturing and advanced packaging is creating further opportunities for 3REN to expand its services.

Koh said one of 3REN’s customers aims to triple its revenue by 2028, creating room for the group to grow alongside the customer despite revenue in the project-based segment. The long-term relationship could also generate ongoing support and maintenance work after the initial equipment delivery.

As of 30 June 2026, 3REN had a workforce of 2,077 and was also exploring opportunities in integrated circuit design and intellectual property to move into higher-value activities. However, the company’s ability to sustain its growth momentum depends on successfully securing enough engineering talent and infrastructure to meet rising demand.

In our earlier coverage of the approval of 27 data center projects in Malaysia through July 2026, we explained the scale of the RM225.97 billion investment and the concentration of projects in Johor, Selangor and Negeri Sembilan. We also examined the impact on the high-skilled job market and the minimum 30% local content requirement, which is regularly monitored, including the need for supporting infrastructure to underpin the sector’s growth.

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