Ferrotec Building Manufacturing Facility in Malaysia

Article By : Ferrotec Holdings Corp.

Ferrotec is building a new manufacturing facility in Malaysia aimed at the production and assembly of cutting-edge materials for the semiconductor equipment industry.

Ferrotec Holdings Corp. is establishing a new manufacturing facility at Kulim Hi-Tech Park in Kedah, Malaysia. The plant, which will be undertaking electromechanical assembly and advanced material fabrication for semiconductor equipment, is designed to meet customer needs while also expanding the group’s business globally.

The plant is expected to kickstart its operation in 2023. With a total investment expected to exceed RM500 million and at a facility of more than 800,000sqft, the project is anticipated to create approximately 250 high-value jobs for Malaysians. As a Tier 1 company supplying to MNCs in semiconductor industry, the company has committed to provide training to Malaysian employees at the factories in Japan and the United States.

“Ferrotec’s decision on choosing Malaysia as a destination of choice for its high-tech manufacturing facility speaks volumes of our talent readiness, strength and capability of our manufacturing and business ecosystems. Indeed, Ferrotec’s presence in Malaysia will turbocharge our local talent development and strengthen our value proposition in the global supply chain,” said Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI). He also stressed that Ferrotec’s investment will open up greater possibilities for other global companies in the industry to follow suit and invest in Malaysia. He added that this major investment is poised to realize Malaysia’s long-term aspiration of becoming a global manufacturing hub.

In 2021, the machinery and equipment (M&E) industry received 48 approved projects worth RM1.67 billion in investment from both foreign and domestic sources. These projects are expected to generate 2,500 employment opportunities, with about 56 percent of employees in the managerial, technical and engineering related skills. The specialized M&E for specific industries sub-sector is the largest contributor of investment for 2021, with 16 projects totaling RM592 million approved.

“Ferrotec has seen increasing demand for our products and services in Asia. With this new production facility, we expect to provide expanded capacity, improve business continuity for critical activities, and most importantly, ensure that our customers do not experience disruptions to their supplies from us,” said Eiji Miyanaga, Chief Executive Officer of Ferrotec (USA) Corp.

Datuk Arham Abdul Rahman, CEO of MIDA, concluded “It is encouraging to know that Ferrotec, who is the key supplier to a leading global front-end wafer fabrication equipment manufacturer has decided to establish a plant in Kulim, Kedah. With Malaysia’s attractive talent pool, positive investment environment, and diversified supply chain among others, I am optimistic that Ferrotec will benefit from the spillovers the nation has created and have more to offer to its global customers.”

To continue transforming the industry, the Malaysian government encourages investors to invest in state-of-the-art technologies that can support advanced manufacturing processes across supply chains.


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