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[News] Micron Opens Second Smart Manufacturing Fab in Malaysia
Micron has announced a significant expansion in Penang, Malaysia on October 13th. Micron had previously invested $1 billion in Penang and plans to invest another $1 billion over the coming years for the construction and equipping of a state-of-the-art assembly and testing facility. This expansion is located in Batu Kawan Industrial Park (BKIP), will increase the total factory area to 1.5 million square feet.
The expansion positions Micron Malaysia to boost production and further enhance its assembly and testing capabilities, allowing it to meet the growing demand for transformative technologies like NAND, PC DRAM, and SSD modules driven by artificial intelligence, autonomous vehicles, and electric cars.
“This expansion also reflects our unwavering dedication to advancing semiconductor development and manufacturing excellence,” Micron Malaysia vice-president and country manager Amarjit Singh Sandhu addressed, “The official opening of our new manufacturing facility in Batu Kawan also strengthens Micron’s global manufacturing footprint, enabling us to deliver quality products to our customers on time, with reduced cycle time and at scale.”
Malaysia’s Semiconductor Potential
Malaysia stands out for its strong education standards and shares the British legal system with just Singapore in ASEAN, making it a competitive choice for companies. The language proficiency of Malaysians in English, Mandarin, and Malay enables smooth global communication. Besides, Malaysia’s two top-tier ports, Port Klang and Port of Tanjung Pelepas, enhance its global accessibility.
Penang is a semiconductor hub, often likened to the “Silicon Valley of the East,” with a focus on electronics, computers, and mobile phone chips. The growing demand for automotive chips and green energy technologies has attracted numerous companies, leading to facility expansions. Major players like Intel, Texas Instruments, Infineon, Bosch Group, and ASE Technology Holding have invested billions in Malaysia’s semiconductor industry, marking it as a growing center for backend testing and packaging.
Current State of Malaysia’s Semiconductor Industry
Apart from Micron, which opened their second plant in Penang last weekend, Malaysia has already attracted significant attention to establish wafer fabrication plants in the United States and other regions.
In the past two years, Intel invested $6.46 billion in advanced packaging capabilities in Penang and Kedah. Texas Instruments embarked on building semiconductor testing and packaging plants in Kuala Lumpur and Malacca, with a $2.7 billion investment. Infineon allocated $5.45 billion for expanding facilities and entering the electric vehicle sector, while Bosch Group is investing $358 million to fortify its semiconductor supply chain in Penang. ASE Technology Holding also initiated the construction of a new testing facility in Penang.
The surge of semiconductor giants underscores Malaysia’s pivotal role in the industry. This transformation aligns with the unique production strengths of Southeast Asian nations, reshaping supply chains and redefining production centers—a focus and challenge for global companies.
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