Ferrotec Expands Presence in Malaysia with New Semiconductor Facility

Ferrotec Holdings Corporation has launched its second manufacturing facility in Kulim, Malaysia, with an investment of MYR 1 billion ($226 million). This facility aims to enhance operational efficiency and job creation within the semiconductor sector. The project, embracing Industry 4.0 technologies, demonstrates Ferrotec’s commitment to innovation and strengthens Malaysia’s position in the global market.

Ferrotec Holdings Corporation, a Japanese semiconductor firm, has commenced construction on its second high-tech manufacturing facility in Kulim, Kedah, Malaysia, investing MYR 1 billion (approximately $226 million). This initiative symbolizes Ferrotec’s commitment to Malaysia and reflects its growing significance in the global semiconductor market. The facility is expected to be completed within one year and will significantly enhance Ferrotec’s operations in Southeast Asia, thereby facilitating quicker delivery and improved customer service across various global markets.

The new factory will occupy nearly 1 million square feet on a 20-acre site, featuring over 700 CNC machines, smart production lines, IoT-enabled systems, and predictive maintenance capabilities, embracing Industry 4.0 principles. This development is projected to generate over 1,000 high-value employment opportunities and augment Ferrotec’s precision manufacturing capacity for semiconductor components.

He Xian Han, Group Chief Executive Officer and President, remarked that the groundbreaking event represents a landmark achievement for Ferrotec and is indicative of their commitment to the semiconductor industry. He affirmed that the successful operation of their initial facility validates Ferrotec’s strategy of establishing a presence in Malaysia to cater to the global market. The support from the Malaysian government and local authorities has bolstered their confidence in expanding their investment in the country.

Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, highlighted that the Kulim Plant 2 signifies more than mere expansion; it is a testament to their confidence in Malaysia’s semiconductor ecosystem. He emphasized that the facility, powered by Industry 4.0 technology, will embody a modern factory conducive to machine learning and collaboration with human talent. Alongside supportive entities like MIDA and the Kedah State Government, Ferrotec seeks to innovate and integrate into Malaysia’s evolving digital economy.

Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, indicated that Ferrotec’s ongoing expansion underscores Malaysia’s potential as a leading destination for high-tech investments in the semiconductor sector. He recognized this investment as a reinforcement of Malaysia’s ambition to become a regional hub for advanced manufacturing and innovation-driven economic growth. The expansion aligns with Malaysia’s New Industrial Master Plan 2030 (NIMP) and Kedah’s E10 initiative, emphasizing the vision of advanced manufacturing and digital transformation spearheaded by Ferrotec’s core values of diligence, aspiration, exploration, and innovation.

The establishment of Ferrotec’s second manufacturing facility in Kulim, Malaysia, represents a significant investment in the local semiconductor industry, reinforcing the country’s position as a key player in global manufacturing. With the incorporation of advanced technologies and a commitment to sustainable growth, this development is set to enhance job creation, operational efficiency, and collaboration within the semiconductor ecosystem, ultimately contributing to Malaysia’s ambitions under the New Industrial Master Plan 2030.

Original Source: technode.global