Ferrotec Launches Second Manufacturing Facility in Malaysia, Investing MYR 1 Billion

Ferrotec Holdings has launched the construction of its second high-tech facility in Malaysia, investing MYR 1 billion. This facility in Kulim will enhance production capabilities and create over 1,000 jobs. It aligns with Malaysia’s industrial strategy and highlights the nation’s growing role in the global semiconductor industry.

Ferrotec Holdings Corporation, a prominent Japanese semiconductor firm, has commenced construction on its second advanced manufacturing facility located in Kulim, Kedah, Malaysia, with an investment amounting to MYR 1 billion (approximately $226 million). This initiative underscores Ferrotec’s ongoing dedication to Malaysia, enhancing its pivotal role within the global semiconductor sector. Planned for completion within a year, the new facility will amplify the company’s presence in Southeast Asia, facilitating improved delivery, customer service, and innovation across regional and global markets, thus augmenting Ferrotec’s cumulative investment in Malaysia to MYR 1.9 billion ($430 million).

The Kulim Plant 2 will cover nearly 1 million square feet on a 20-acre site, equipped with over 700 CNC machines, smart production lines, IoT-enabled systems, and predictive maintenance features, aligning with Industry 4.0 standards. This new facility is projected to create over 1,000 high-value jobs, while enhancing Ferrotec’s precision manufacturing capabilities for semiconductor components. He Xian Han, the Group Chief Executive Officer and President, emphasized that this groundbreaking represents a critical milestone for Ferrotec and reflects their collaborative effort in establishing a robust semiconductor industry chain.

Han remarked on the success of Ferrotec’s initial facility, stating, “The success of our first facility has proven the validity of Ferrotec’s strategy of ‘rooting in Malaysia and serving the global market.’” He affirmed that this investment would solidify the company’s commitment to broaden the cooperation and investment in Malaysia’s semiconductor ecosystem, facilitated by support from the Malaysian government, the Kedah state, and the Malaysian Investment Development Authority (MIDA).

Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, stated that Kulim Plant 2 is emblematic of confidence in Malaysia’s burgeoning semiconductor sector, highlighting its state-of-the-art nature. He elaborated, “This plant is not just bigger—it is smarter. Powered by Industry 4.0 technologies, it embodies Ferrotec’s vision for a modern factory where machines learn, adapt, and collaborate with human ingenuity.”

Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, acknowledged that Ferrotec’s expansion attests to Malaysia’s position as an attractive venue for high-tech investments in the semiconductor industry. He noted, “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.”

The expansion aligns with Malaysia’s New Industrial Master Plan 2030 (NIMP) and Kedah’s E10 initiative, which both aim to elevate Malaysia as a key hub for advanced manufacturing and digital transformation. Ferrotec reiterated its commitment to its core values of diligence, aspiration, exploration, and innovation, which will propel sustainable growth and foster deeper collaboration both in Malaysia and on a global scale.

In summary, Ferrotec Holdings Corporation’s establishment of its second high-tech manufacturing facility in Malaysia represents a significant investment in the nation’s semiconductor industry. This expansion is anticipated to create numerous job opportunities and strengthen its operational capacity while reinforcing Malaysia’s position as a regional hub for advanced manufacturing. The firm’s commitment to innovation and collaboration underscores the transformative potential of this new venture.

Original Source: technode.global