Ferrotec Breaks Ground on Second Semiconductor Facility in Malaysia
Ferrotec Holdings Corporation has commenced the construction of its second high-tech manufacturing facility in Kulim, Malaysia, with a MYR 1 billion investment. The new facility will span 1 million square feet, create over 1,000 jobs, and enhance Ferrotec’s operational capabilities in the global semiconductor industry, reflecting strong governmental support and alignment with Malaysia’s New Industrial Master Plan 2030.
Ferrotec Holdings Corporation, a Japanese semiconductor firm, has inaugurated the construction of its second high-tech manufacturing facility in Kulim, Kedah, Malaysia, with an investment totaling MYR 1 billion (approximately $226 million). This initiative underscores the firm’s long-term commitment to Malaysia’s expanding role in the global semiconductor sector. The new facility, scheduled for completion within a year, will enhance Ferrotec’s Southeast Asian presence, allowing for improved service delivery and innovation across various markets in Asia, Europe, and the Americas.
The new Kulim Factory 2 will cover nearly 1 million square feet on a 20-acre site, equipped with more than 700 CNC machines, smart production lines, IoT systems, and predictive maintenance capabilities, thus embodying the principles of Industry 4.0. This expansion is projected to create over 1,000 high-value jobs, significantly boosting the company’s precision manufacturing capability for semiconductor components.
He Xian Han, Group Chief Executive Officer and President of Ferrotec, 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 emphasized that the success of the first facility validates their strategy of operating in Malaysia while serving global markets.
According to Mr. Han, the backing from the Malaysian government, the Kedah state, and the Malaysian Investment Development Authority (MIDA) has enhanced their confidence in expanding operations. He stated, “With our second facility, we aim to better serve our global customers with high-quality, innovative components, and to contribute to the creation of a collaborative, resilient, and forward-looking semiconductor value chain in Malaysia and beyond.”
Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, added that Kulim Plant 2 represents not just an expansion, but a testament to their trust in Malaysia’s burgeoning semiconductor landscape. He mentioned, “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, noted that Ferrotec’s growth in Malaysia signifies the country’s status as a key destination for high-tech investments in the semiconductor industry. He articulated that this commitment reflects investor confidence in Malaysia’s policies, infrastructure, and talent, further solidifying the nation’s ambition to emerge as a leader in advanced manufacturing.
This expansion is in line with Malaysia’s New Industrial Master Plan 2030 and Kedah’s E10 initiative, both of which aim to establish Malaysia as a regional hub for advanced manufacturing and digital transformation. Ferrotec continues to adhere to its core values of diligence, aspiration, exploration, and innovation to drive sustainable development and foster collaboration both in Malaysia and beyond.
Ferrotec Holdings Corporation’s construction of a second manufacturing facility in Malaysia solidifies its commitment to the region and enhances its operational capabilities in the global semiconductor market. The project promises job creation and technological advancements powered by Industry 4.0, aligning with national goals for industrial growth. Furthermore, strong governmental support reinforces Malaysia’s status as a competitive destination for high-tech investments. This initiative underscores Ferrotec’s dedication to innovation and collaboration within the semiconductor industry.
Original Source: technode.global
