Ferrotec Breaks Ground on Second High-Tech Facility in Malaysia

Ferrotec Holdings Corporation has initiated construction on its second high-tech manufacturing facility in Kulim, Malaysia, with an investment of MYR 1 billion. The facility will enhance Ferrotec’s operations in Southeast Asia, solidifying the company’s total investments in Malaysia to MYR 1.9 billion. It is expected to create over 1,000 jobs and feature Industry 4.0 technologies. This expansion reflects Malaysia’s ambition to be a leader in advanced manufacturing and digital transformation.

Ferrotec Holdings Corporation, a notable Japanese semiconductor firm, has recently commenced construction on its second advanced manufacturing facility in Kulim, Kedah, Malaysia. This significant investment amounts to MYR 1 billion (approximately $226 million), reflecting the company’s enduring commitment to Malaysia and its expanding role in the global semiconductor sector.

The new facility, projected for completion within one year, will bolster Ferrotec’s presence in Southeast Asia. It aims to enhance customer service, expedite delivery, and promote innovation across markets in Asia, Europe, and the Americas. With this project, Ferrotec’s total investment in Malaysia rises to MYR 1.9 billion ($430 million).

Spanning nearly 1 million square feet on a 20-acre site, the upcoming Kulim Factory 2 will be equipped with over 700 CNC machines, innovative production lines, IoT-enabled systems, and predictive maintenance capabilities, aligning with Industry 4.0 standards. It is anticipated that the facility will generate over 1,000 high-value jobs, enhancing the company’s production capacity for semiconductor components.

He Xian Han, the Group Chief Executive Officer and President, remarked, “The groundbreaking of our second plant in Kulim is not only an important milestone in the history of Ferrotec, but also a true reflection of our deep cooperation on building the semiconductor industry chain.” He further emphasized the firm’s strategy of “rooting in Malaysia and serving the global market.”

He stated that this new investment solidifies Ferrotec’s confidence to deepen cooperation and set a precedent in its endeavors in Malaysia. He also appreciated the support from the Malaysian government, Kedah state authorities, and the Malaysian Investment Development Authority (MIDA), which he credited for the company’s confidence in expanding its operations.

Anzhi He, the Managing Director of Ferrotec Manufacturing Malaysia, expressed that Kulim Plant 2 signifies more than just an expansion; it exemplifies a strong confidence in Malaysia’s thriving 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.” With MIDA, KTPC, and Kedah State Government’s support, Ferrotec aims to shape the future of AI and the burgeoning digital economy in Malaysia.

Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, noted that Ferrotec’s ongoing expansion in Malaysia highlights the country as a prime destination for high-tech investments in the semiconductor field. He articulated, “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.”

Furthermore, the expansion aligns with Malaysia’s New Industrial Master Plan 2030 (NIMP) and Kedah’s E10 initiative, which endeavor to establish the country as a hub for advanced manufacturing and digital transformation. Ferrotec asserted its dedication to core values of diligence, aspiration, exploration, and innovation, driving both sustainable growth and closer cooperation in Malaysia and beyond.

In summary, Ferrotec Holdings Corporation’s groundbreaking for their second facility in Malaysia demonstrates a robust investment intended to enhance the company’s capabilities in the semiconductor industry. The initiative aligns with national industrial goals, fortifying Malaysia’s position within the global market. The new facility’s state-of-the-art technology and job creation further signify a commitment to innovation and economic growth in the region.

Original Source: technode.global