Malaysian semiconductor equipment maker Ferrotec starts construction of a new factory, and the operation time may be completed in 2023

Ferrotec Holdings Corporation, a global provider of materials, components and precision system solutions, held a groundbreaking ceremony at Kulim Hi-Tech Park in Kedah in August 2022 with the assistance of the Malaysian Investment Development Authority (MIDA). Construction of the new manufacturing facility began on 9 May and will begin operations in 2023.

The new facility will perform electromechanical assembly and advanced materials manufacturing for semiconductor equipment, designed to meet customer needs while expanding the group's global presence.

The plant is expected to start operations in 2023. The total investment is expected to exceed RM500 million and the facility will span over 800,000 sq ft and is expected to create about 250 high-value jobs for Malaysians.

As a Tier 1 company supplying multinational companies in the semiconductor industry, the company has been working on training Malaysian employees in factories in Japan and the United States.

In 2021, the machinery and equipment (M&E) industry received 48 approved projects worth RM1.67 billion (US$376 million) in investment from domestic and foreign sources.

The projects are expected to create 2,500 jobs, with approximately 56% of employees with management, technical and engineering-related skills. Specialized M&E in the specific industry sub-sector was the largest contributor to investment in 2021, with 16 projects approved for a total of RM592 million (US$133.18 million).

MIDA deputy chief executive officer Lim Bee Vian said despite facing competition from low-cost producers, Malaysian M&E companies continued to thrive in the production of high value-added products and integrated services, supporting the demands of multinational corporations striving to serve. Their customers are better.

To continue transforming the industry, the Malaysian government encourages investors to invest in state-of-the-art technology to support advanced manufacturing processes throughout the supply chain.