Business

Texas Instruments investing RM14.6 bil to expand KL, Melaka operations

1,800 new local jobs to be created, says investment minister

Updated 3 years ago · Published on 13 Jun 2023 5:24PM

Texas Instruments investing RM14.6 bil to expand KL, Melaka operations
Texas Instruments’ vice president, assembly and test manufacturing operations, Yogannaidu Sivanchalam says these investments are part of TI’s long-term strategy to expand its internal manufacturing capacity to support the increasing need for semiconductors and provide greater assurance of supply. – Texas Instruments pic, June 13, 2023

KUALA LUMPUR – Texas Instruments (TI) is investing RM14.6 billion to expand its operations in Kuala Lumpur and Melaka with production in both locations expected to begin as early as 2025.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the US-headquartered semiconductor company’s RM9.6 billion investment in Kuala Lumpur would create 1,300 local jobs while RM5 billion set to be invested in Melaka would create 500 local jobs.

“TI plans to expand its assembly and test operations to reflect Malaysia’s clear positioning in the global semiconductor supply chain while complementing our New Investment Policy and New Industrial Master Plan’s focus on attracting hi-tech, high-value investments to support our increasingly digitised global and domestic economies,” he posted on Twitter today.

In a separate statement, the Malaysian Investment Development Authority (Mida) said these new investments would support TI’s plan to bring 90% of its assembly and test operations internal by 2030 to have greater control of supply.

Mida said the announced expansion reflected the joint efforts of TI and the Malaysian government, especially the Investment, Trade and Industry Ministry (Miti) and Mida, to reinforce Malaysia’s standing in the semiconductor industry and the initiatives aimed to drive economic growth, attract investments and foster knowledge exchange, contributing to the country’s overall development.

It said the timing of the expansion also aligned with Malaysia’s broader strategy of strengthening the semiconductor industry’s ecosystem and driving economic growth.

Chief executive officer Datuk Arham Abdul Rahman said Mida is fully dedicated to supporting TI’s expansion plans, which would not only bring significant investments but also enhanced analogue and embedded processing manufacturing capabilities to the country.

“This partnership further solidifies Malaysia’s position as a leading hub in the region for semiconductor innovation,” he said.

Meanwhile, TI’s vice president, assembly and test manufacturing operations, Yogannaidu Sivanchalam said these investments are part of TI’s long-term strategy to expand its internal manufacturing capacity to support the increasing need for semiconductors and provide greater assurance of supply.

“TI is proud to have been operating in Malaysia for more than 50 years and our decision to expand our back-end manufacturing is a reflection of the talented and growing team in Malaysia that will be critical to TI’s future,” he said.

On the expansion, Mida said TI had recently purchased the building next to its existing assembly and test factory in Kuala Lumpur that sat on 7.28ha of land, which the company planned to convert into an assembly and test factory with more than one million square feet of cleanroom space.

It said the construction is expected to start later this year with production to begin as early as 2025.

MIDA said TI is also constructing a new, six-level assembly and test factory next to its existing assembly and test factory in Melaka which would include more than 400,000 sq ft of cleanroom space and would connect to TI’s existing factory.

It said at full production, TI’s new, state-of-the-art factories in Malaysia would feature advanced factory automation to assemble and test hundreds of millions of analogue and embedded processing chips daily that would go into electronics everywhere, from renewable energy sources to electric vehicles.

“At both factories, environmentally responsible construction methods that emphasise an energy-efficient design will be used to meet one of the Leadership in Energy and Environmental Design (LEED) building rating system’s highest levels of structural efficiency and sustainability, LEED Gold.

“Advanced equipment in the factories will reduce waste, water and energy consumption per chip, further demonstrating TI’s commitment to responsible, sustainable manufacturing,” it added. – Bernama, June 13, 2023

Related News

Business / 3d

Pengerang investment must deliver results, not mere assurances – industry expert

Malaysia / 1w

Plans underway to set up financial hub on Pulau Jerejak

Tech / 2w

Penang in need of financial centre to boost electrical and electronics sectors - CM

Tech / 1mth

CM: Penang to continue strengthening semiconductor ecosystem

Malaysia / 1mth

Network School postpones new investments in Malaysia, seeks government guarantee

Malaysia / 4mth

MACC records political analyst’s statement on semiconductor project case

Spotlight

Malaysia

Puteri Umno distances itself from viral Threads post

By Alfian Z.M. Tahir

Malaysia

MACC drops orange detention attire for court remand cases after PM’s call

World

Man jailed six years for keeping Indonesian woman as slave in Melbourne home

Malaysia

Emergency declared in Serian as haze reaches hazardous levels (UPDATED)

Malaysia

Haze in Serian enters emergency phase

Malaysia

Death sentence for deaf, mute man who killed family of four upheld

Malaysia

Retired army officer with Datuk title charged with alleged sexual assault of golf caddie

Heritage

Penang first state to recognise Hungry Ghost Festival, cemeteries as heritage

You may be interested

Business

Oil prices heads for 10% weekly surge as Strait of Hormuz risks mount

Business

Oil prices holds above US$90 as Iran conflict revives supply fears

Business

10 per cent tariff by US not a safe ceiling, must act now – industry expert

Business

Robo.ai reports US$180m revenue following QC Capital acquisition

By Alfian Z.M. Tahir

Business

BNM holds OPR at 2.75% as Malaysia set for 5% growth

Business

Budget 2027 should unlock business investment, expand Malaysia’s productive capacity - FMM

Business

Keep power use below 600kwh, get RM100: TNB launches energy-saving campaign