Last updated on August 23, 2025
KUALA LUMPUR – Integrated engineering solutions provider Kelington Group Berhad, via its wholly owned subsidiary Kelington Engineering (Germany) GmbH (“KEGG”), has accepted a Letter of Intent (“LOI”) for a semiconductor hook-up project in Dresden, Germany — a milestone that marks Kelington’s significant entry into the European market.
The LOI outlines a framework for detailed discussions for KEGG to deliver hook-up services for key process systems involving specialty gases, chemicals, slurry, bulk gases, process vacuum, and ultra-pure water (UPW). It also sets the agreed unit pricing and adjustment clauses, which will remain effective until 2027. This arrangement positions KEGG to undertake follow-on work during the wafer fabrication plant’s (“wafer fab”) future expansions without renegotiating core pricing terms.
For the first phase alone, the project is valued at a minimum of EUR 30 million (approximately RM146 million), with potential to reach EUR 50 million (around RM244 million), subject to the client’s final plant configuration. Work will begin immediately and is expected to be completed within two to three years.
The overall value to Kelington is projected to exceed initial estimates, as wafer fabs typically undergo continuous capacity upgrades over decades. As the appointed hook-up contractor, Kelington stands to benefit from recurring demand for such works throughout the plant’s lifespan.
“This milestone represents a significant step in our European expansion and reinforces our reputation as a trusted global engineering solutions provider,” said Ir. Raymond Gan (“顏漢慶”), CEO of Kelington Group Berhad. “The end-user is a long-standing client we have supported on multiple projects in Malaysia, and we are proud to extend this partnership into Europe.”
A semiconductor hook-up involves installing and integrating utility and process systems in wafer fabs producing smart power chips — essential components for advanced technologies such as AI, IoT, EVs, industrial automation, and renewable energy. With the European Chips Act boosting local semiconductor manufacturing and geopolitical shifts driving supply chain resilience, Kelington sees strong growth prospects in the region.
“This development opens the door to additional work packages and strengthens our foothold in Europe, which we view as a key growth platform moving forward,” Gan added.
As of 31 March 2025, Kelington’s outstanding order book stands at RM1.43 billion, backed by a robust tender pipeline of RM4.0 billion as of 30 April 2025.
