IJM secures RM1.23 billion contract to build semiconductor plant in Kulim

IJM Corp Bhd's subsidiary IJM Construction has been granted a RM1.23 billion contract by Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd to build a semiconductor fab in Kulim Hi-Tech Park, Kedah. The scope includes a four-storey production facility, a three-storey central utility building, a wastewater treatment plant and supporting infrastructure, with construction to commence in the fourth quarter of 2026 and be completed within 14 months.

Analysts from Hong Leong Investment Bank and Public Investment Bank highlighted IJM's industrialised building system as a key factor in winning the first billion-ringgit semiconductor package, projecting a high-single-digit profit-before-tax margin. The fast schedule is expected to bring forward earnings recognition for the fiscal years ending March 2027 and 2028. RHB Research also maintained a buy rating, noting the project reinforces IJM's presence in northern Malaysia's industrial construction market, which already includes other semiconductor-related facilities and medical device plants.