Ferrotec Invests in Second Manufacturing Facility in Malaysia
Japanese semiconductor firm Ferrotec has launched construction on its second high-tech facility in Kulim, Malaysia, investing MYR 1 billion ($226 million). Scheduled for completion in one year, it will occupy 1 million square feet and will create over 1,000 jobs. The facility aims to enhance Ferrotec’s capabilities in precision manufacturing and reinforce its commitment to the global semiconductor industry.
Ferrotec Holdings Corporation, a Japanese semiconductor firm, has commenced construction on its second high-tech manufacturing facility in Kulim, Kedah, Malaysia, with an investment of MYR 1 billion ($226 million). This facility represents a significant part of the company’s commitment to expanding its operations within Malaysia’s semiconductor sector, reinforcing its role in the global market.
The completion of the new facility is anticipated within a year. It will enhance Ferrotec’s operational presence in Southeast Asia, leading to improved delivery times, customer service, and innovation for markets spanning Asia, Europe, and the Americas. The total investment in Malaysia will reach MYR 1.9 billion ($430 million) upon the facility’s completion.
Spanning nearly 1 million square feet, the new factory will utilize advanced technology, including over 700 CNC machines, smart production lines, Internet of Things (IoT) systems, and predictive maintenance technologies, embodying the principles of Industry 4.0. The plant is projected to create over 1,000 high-value jobs, thereby improving Ferrotec’s precision manufacturing capacity for semiconductor components.
He Xian Han, the Group Chief Executive Officer, emphasized that the groundbreaking event marks a pivotal moment for Ferrotec and reflects the company’s strategy of establishing a global presence from Malaysia. He remarked, “The success of our first facility has proven the validity of Ferrotec’s strategy of ‘rooting in Malaysia and serving the global market.’”
Han noted that the firm has gained confidence to deepen cooperation and increase investments in response to support from Malaysia’s government and related authorities. He articulated the commitment to supply high-quality components and foster a resilient semiconductor value chain regionally and beyond.
Anzhi He, the Managing Director of Ferrotec Manufacturing Malaysia, described the second plant as both an expansion and a testament to confidence in Malaysia’s semiconductor ecosystem. He stated, “This plant is not just bigger—it is smarter. Powered by Industry 4.0 technologies, it embodies Ferrotec’s vision for a modern factory.”
Sikh Shamsul Ibrahim Sikh Abdul Majid, the CEO of MIDA, affirmed that Ferrotec’s expansion demonstrates Malaysia’s attractiveness for high-tech investments and investor confidence in the country’s growth policies. He indicated that this investment further strengthens the global semiconductor supply chain from Kedah’s center.
Aligning with Malaysia’s New Industrial Master Plan 2030 and Kedah’s E10 initiative, Ferrotec aims to elevate the country as a regional hub for advanced manufacturing and digital transformation. The company remains dedicated to its core values of diligence, aspiration, exploration, and innovation to promote sustainable growth and collaborative endeavors in Malaysia and beyond.
Ferrotec’s establishment of its second manufacturing facility in Malaysia exemplifies a robust commitment to investing in the region’s semiconductor industry. The integration of advanced technologies as part of Industry 4.0 reflects the company’s strategic approach to enhancing production efficiency and fostering high-value employment. With government support and alignment with national development plans, Ferrotec is poised to significantly contribute to Malaysia’s position as a prominent player in the global semiconductor value chain.
Original Source: technode.global
