ROHM-Wako Electronics is investing RM910 million in expanding its electronic components facility in Kelantan, Malaysia.
ROHM-Wako Electronics (Malaysia) Sdn. Bhd. (RWEM) is expanding its electronic components facility in Kelantan, Malaysia, with a total investment of RM910 million ($216.26 million at $1=RM4.20). This investment is expected to create high-skilled jobs for over 340 Malaysians. It is the single biggest investment ever made by the company, which uniquely positions Malaysia as a key hub for the semiconductor and automotive global value chains.
“It is noteworthy that the establishment of the manufacturing facility in Malaysia is a strategic decision by Rohm-Wako Electronics to build long-term presence in the ASEAN region. Indeed, this vital expansion signifies the company’s confidence in the capability of our local talent of highly skilled engineers and technicians. The investment performance of ROHM-Wako Electronics in Malaysia is most encouraging, with this new manufacturing facility generating employment opportunities for local talent, contributing to the economic upliftment of the community as well as boosting commercial development in the state. This expansion project is in line with the National Investment Aspirations (NIA) to make Malaysia a strategic investment hub,” said YB. Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI).
“MIDA looks forward to welcoming other potential partners to leverage Malaysia’s capability as a supply chain hub to serve the industrial needs of the global market. The company’s expansion is poised to strengthen the country’s position in the global value chains. It is also expected to promote high-skilled jobs and ensure that Malaysia’s industries remain resilient and competitive,” remarked Datuk Arham Abdul Rahman, Chief Executive Director (CEO) of the Malaysian Investment Development Authority (MIDA).
“The expansion is vital for our company’s continuous business and innovation growth, and with the Malaysian plant having skilled and reliable workforce, we are confident that we have made the right decision to continue investing in this country,” said RWEM President Hideki Hashimoto.
The new building, which will be constructed within the RWEM premise, will serve the purpose of responding to the strong demand for semiconductors and promoting multi-site production system of analog Large-Scale Integrations (LSIs) and transistors in line with the Business Continuity Management (BCM). The construction of the new building will ultimately increase the overall production capacity by approximately 1.5 times.
The construction of the new facility, which is expected to have a three-story building with a total floor area of 29,580m2, is envisaged to begin in Q1 2022 and be completed in August 2023. The new building will be equipped with various energy-saving technologies to reduce the environmental impact, expected to reduce CO2 emissions by approximately 15%. This will eventually strengthen the BCM system by adopting various disaster-proof measures with up-to-date technologies.
The expansion will provide capacity for additional component of wide line transistor and gate driver integrated circuit (IC), mainly used for electric vehicles (EVs) and hybrid cars. These components will also apply to the company’s existing production of discrete semiconductors such as diodes, light emitting diodes (LEDs), and laser diodes used in a wide arrange of electronic consumer products such as audio and video, TVs, laptops as well as mobile phones. This is in line with Malaysia’s National Automotive Policy (NAP) 2020 which focuses on the development of new technologies in future mobility areas.