Ferrotec Commences Construction of Second Semiconductor Facility in Malaysia
Ferrotec Holdings Corporation has commenced construction of its second high-tech manufacturing facility in Kulim, Kedah, Malaysia, with an investment of MYR 1 billion ($226 million). The facility, expected to create over 1,000 jobs, will strengthen the company’s presence in Southeast Asia and bolster its commitment to the semiconductor sector. This development aligns with Malaysia’s New Industrial Master Plan 2030.
Ferrotec Holdings Corporation, a prominent Japanese semiconductor enterprise, has initiated the construction of its second high-tech manufacturing facility in Kulim, Kedah, Malaysia, investing MYR 1 billion ($226 million) in this project. This development underscores the company’s commitment to Malaysia and emphasizes its growing significance in the global semiconductor sector.
The facility is anticipated to be operational within one year, further solidifying Ferrotec’s presence in Southeast Asia and facilitating quicker deliveries, improved customer service, and increased innovation for markets spanning Asia, Europe, and the Americas. With this new investment, Ferrotec’s total expenditure in Malaysia will reach MYR 1.9 billion ($430 million).
Spanning nearly 1 million square feet over a 20-acre site, Kulim Factory 2 will incorporate over 700 CNC machines, smart production lines, IoT-capable systems, and predictive maintenance functionality, aligning with Industry 4.0 standards. It is projected to generate over 1,000 high-value job opportunities, thereby enhancing Ferrotec’s capacity in precision manufacturing of semiconductor components.
He Xian Han, Group Chief Executive Officer and President of Ferrotec, stated that the groundbreaking of the second plant marks a pivotal moment for the company and signifies a strong collaborative effort in building the semiconductor industry chain. He noted, “The success of our first facility has proven the validity of Ferrotec’s strategy of ‘rooting in Malaysia and serving the global market.’
Han acknowledged the pivotal role of Malaysian governmental bodies and the Kedah state in instilling confidence for expansion, emphasizing the aim of offering high-quality, innovative components while contributing to a resilient semiconductor value chain.
Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, described Kulim Plant 2 not merely as an extension but as a testament to their confidence in Malaysia’s semiconductor ecosystem. He remarked, “This plant is not just bigger—it is smarter,” fundamentally enhancing Ferrotec’s vision of a modern factory integration where machines learn and adapt collaboratively.
Furthermore, Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, acknowledged that Ferrotec’s growth in Malaysia accentuates the nation’s reputation as an attractive locale for high-tech investments. He commented, “This commitment not only reflects investor confidence in our policies, infrastructure, and talent—but also reinforces our ambition to become a regional leader in advanced manufacturing.”
This expansion is aligned with Malaysia’s New Industrial Master Plan 2030 and Kedah’s E10 initiative aimed at positioning the country as a leading regional hub for advanced manufacturing and digital transformation. Ferrotec emphasizes its guiding principles of diligence, aspiration, exploration, and innovation to promote sustainable growth and deepen collaborations in Malaysia and beyond.
In summary, Ferrotec Holdings Corporation’s groundbreaking for its second manufacturing facility in Malaysia marks a significant stride in reinforcing its commitment to the region’s semiconductor industry. This MYR 1 billion investment not only enhances Ferrotec’s operational capabilities but also promotes job creation and aligns with national initiatives for advanced manufacturing. The collaboration with local authorities reflects a shared vision for sustainable growth and innovation in Malaysia’s semiconductor ecosystem.
Original Source: technode.global
